Correlation Between Citigroup and WPLAU
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By analyzing existing cross correlation between Citigroup and WPLAU 37 15 SEP 26, you can compare the effects of market volatilities on Citigroup and WPLAU 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 WPLAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and WPLAU.
Diversification Opportunities for Citigroup and WPLAU
Poor diversification
The 3 months correlation between Citigroup and WPLAU is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WPLAU 37 15 SEP 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WPLAU 37 15 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 WPLAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WPLAU 37 15 has no effect on the direction of Citigroup i.e., Citigroup and WPLAU go up and down completely randomly.
Pair Corralation between Citigroup and WPLAU
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.66 times more return on investment than WPLAU. However, Citigroup is 5.66 times more volatile than WPLAU 37 15 SEP 26. It trades about 0.1 of its potential returns per unit of risk. WPLAU 37 15 SEP 26 is currently generating about 0.13 per unit of risk. If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 26.7% |
| Values | Daily Returns |
Citigroup vs. WPLAU 37 15 SEP 26
Performance |
| Timeline |
| Citigroup |
| WPLAU 37 15 |
Citigroup and WPLAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and WPLAU
The main advantage of trading using opposite Citigroup and WPLAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, WPLAU 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 WPLAU will offset losses from the drop in WPLAU's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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