Correlation Between Citigroup and 87264AAZ8
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By analyzing existing cross correlation between Citigroup and T MOBILE USA INC, you can compare the effects of market volatilities on Citigroup and 87264AAZ8 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of 87264AAZ8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 87264AAZ8.
Diversification Opportunities for Citigroup and 87264AAZ8
Pay attention - limited upside
The 3 months correlation between Citigroup and 87264AAZ8 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and T MOBILE USA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE USA and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with 87264AAZ8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE USA has no effect on the direction of Citigroup i.e., Citigroup and 87264AAZ8 go up and down completely randomly.
Pair Corralation between Citigroup and 87264AAZ8
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.87 times more return on investment than 87264AAZ8. However, Citigroup is 1.14 times less risky than 87264AAZ8. It trades about 0.21 of its potential returns per unit of risk. T MOBILE USA INC is currently generating about -0.18 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. T MOBILE USA INC
Performance |
| Timeline |
| Citigroup |
| T MOBILE USA |
Citigroup and 87264AAZ8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 87264AAZ8
The main advantage of trading using opposite Citigroup and 87264AAZ8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 87264AAZ8 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 87264AAZ8 will offset losses from the drop in 87264AAZ8's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 87264AAZ8 vs. AEP TEX INC | 87264AAZ8 vs. US BANK NATIONAL | 87264AAZ8 vs. Bank of America | 87264AAZ8 vs. GE Aerospace |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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