Correlation Between Citigroup and WASTE
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By analyzing existing cross correlation between Citigroup and WASTE MGMT INC, you can compare the effects of market volatilities on Citigroup and WASTE 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 WASTE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and WASTE.
Diversification Opportunities for Citigroup and WASTE
Significant diversification
The 3 months correlation between Citigroup and WASTE is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WASTE MGMT INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WASTE MGMT INC 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 WASTE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WASTE MGMT INC has no effect on the direction of Citigroup i.e., Citigroup and WASTE go up and down completely randomly.
Pair Corralation between Citigroup and WASTE
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.06 times more return on investment than WASTE. However, Citigroup is 1.06 times more volatile than WASTE MGMT INC. It trades about 0.07 of its potential returns per unit of risk. WASTE MGMT INC is currently generating about 0.0 per unit of risk. If you would invest 4,381 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,706 from holding Citigroup or generate 61.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 22.59% |
| Values | Daily Returns |
Citigroup vs. WASTE MGMT INC
Performance |
| Timeline |
| Citigroup |
| WASTE MGMT INC |
Citigroup and WASTE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and WASTE
The main advantage of trading using opposite Citigroup and WASTE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, WASTE 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 WASTE will offset losses from the drop in WASTE's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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