Correlation Between Citigroup and 902613AX6
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By analyzing existing cross correlation between Citigroup and UBS Group 375, you can compare the effects of market volatilities on Citigroup and 902613AX6 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 902613AX6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 902613AX6.
Diversification Opportunities for Citigroup and 902613AX6
Very weak diversification
The 3 months correlation between Citigroup and 902613AX6 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and UBS Group 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS Group 375 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 902613AX6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS Group 375 has no effect on the direction of Citigroup i.e., Citigroup and 902613AX6 go up and down completely randomly.
Pair Corralation between Citigroup and 902613AX6
Taking into account the 90-day investment horizon Citigroup is expected to generate 13.81 times more return on investment than 902613AX6. However, Citigroup is 13.81 times more volatile than UBS Group 375. It trades about 0.11 of its potential returns per unit of risk. UBS Group 375 is currently generating about 0.05 per unit of risk. If you would invest 6,104 in Citigroup on August 28, 2024 and sell it today you would earn a total of 871.00 from holding Citigroup or generate 14.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 92.19% |
| Values | Daily Returns |
Citigroup vs. UBS Group 375
Performance |
| Timeline |
| Citigroup |
| UBS Group 375 |
Citigroup and 902613AX6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 902613AX6
The main advantage of trading using opposite Citigroup and 902613AX6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 902613AX6 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 902613AX6 will offset losses from the drop in 902613AX6's long position.The idea behind Citigroup and UBS Group 375 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 902613AX6 vs. AEP TEX INC | 902613AX6 vs. US BANK NATIONAL | 902613AX6 vs. 3M Company | 902613AX6 vs. Alcoa Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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