Correlation Between Citigroup and Wyndham
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By analyzing existing cross correlation between Citigroup and Wyndham Destinations 51, you can compare the effects of market volatilities on Citigroup and Wyndham 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 Wyndham. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wyndham.
Diversification Opportunities for Citigroup and Wyndham
Excellent diversification
The 3 months correlation between Citigroup and Wyndham is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wyndham Destinations 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wyndham Destinations 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 Wyndham. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wyndham Destinations has no effect on the direction of Citigroup i.e., Citigroup and Wyndham go up and down completely randomly.
Pair Corralation between Citigroup and Wyndham
Taking into account the 90-day investment horizon Citigroup is expected to generate 13.54 times more return on investment than Wyndham. However, Citigroup is 13.54 times more volatile than Wyndham Destinations 51. It trades about 0.21 of its potential returns per unit of risk. Wyndham Destinations 51 is currently generating about -0.17 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Wyndham Destinations 51
Performance |
| Timeline |
| Citigroup |
| Wyndham Destinations |
Citigroup and Wyndham Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wyndham
The main advantage of trading using opposite Citigroup and Wyndham positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wyndham 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 Wyndham will offset losses from the drop in Wyndham's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wyndham vs. Summit Materials | Wyndham vs. JBG SMITH Properties | Wyndham vs. Lion One Metals | Wyndham vs. MI Homes |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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