Correlation Between Citigroup and VULCAN
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By analyzing existing cross correlation between Citigroup and VULCAN MATLS 39, you can compare the effects of market volatilities on Citigroup and VULCAN 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 VULCAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and VULCAN.
Diversification Opportunities for Citigroup and VULCAN
Good diversification
The 3 months correlation between Citigroup and VULCAN is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and VULCAN MATLS 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VULCAN MATLS 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 VULCAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VULCAN MATLS has no effect on the direction of Citigroup i.e., Citigroup and VULCAN go up and down completely randomly.
Pair Corralation between Citigroup and VULCAN
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the VULCAN. In addition to that, Citigroup is 10.33 times more volatile than VULCAN MATLS 39. It trades about -0.01 of its total potential returns per unit of risk. VULCAN MATLS 39 is currently generating about 0.12 per unit of volatility. If you would invest 9,837 in VULCAN MATLS 39 on November 29, 2024 and sell it today you would earn a total of 36.00 from holding VULCAN MATLS 39 or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. VULCAN MATLS 39
Performance |
| Timeline |
| Citigroup |
| VULCAN MATLS |
Citigroup and VULCAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and VULCAN
The main advantage of trading using opposite Citigroup and VULCAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, VULCAN 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 VULCAN will offset losses from the drop in VULCAN's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| VULCAN vs. Corning Incorporated | VULCAN vs. Companhia Siderurgica Nacional | VULCAN vs. Allegheny Technologies Incorporated | VULCAN vs. LB Foster |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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