Correlation Between Citigroup and 931142EW9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citigroup and 931142EW9 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and 931142EW9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and WMT 39 09 SEP 25, you can compare the effects of market volatilities on Citigroup and 931142EW9 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 931142EW9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 931142EW9.

Diversification Opportunities for Citigroup and 931142EW9

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Citigroup and 931142EW9 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WMT 39 09 SEP 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WMT 09 SEP 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 931142EW9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WMT 09 SEP has no effect on the direction of Citigroup i.e., Citigroup and 931142EW9 go up and down completely randomly.

Pair Corralation between Citigroup and 931142EW9

Taking into account the 90-day investment horizon Citigroup is expected to generate 6.63 times more return on investment than 931142EW9. However, Citigroup is 6.63 times more volatile than WMT 39 09 SEP 25. It trades about 0.06 of its potential returns per unit of risk. WMT 39 09 SEP 25 is currently generating about -0.01 per unit of risk. If you would invest  4,733  in Citigroup on August 27, 2024 and sell it today you would earn a total of  2,251  from holding Citigroup or generate 47.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.38%
ValuesDaily Returns

Citigroup  vs.  WMT 39 09 SEP 25

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
WMT 09 SEP 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days WMT 39 09 SEP 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 931142EW9 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Citigroup and 931142EW9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and 931142EW9

The main advantage of trading using opposite Citigroup and 931142EW9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 931142EW9 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 931142EW9 will offset losses from the drop in 931142EW9's long position.
Citigroup vs. Nu Holdings
Citigroup vs. HSBC Holdings PLC
Citigroup vs. Bank of Montreal
Citigroup vs. Bank of Nova
The idea behind Citigroup and WMT 39 09 SEP 25 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.
931142EW9 vs. AEP TEX INC
931142EW9 vs. US BANK NATIONAL
931142EW9 vs. 3M Company
931142EW9 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
CEOs Directory
Screen CEOs from public companies around the world
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY