Correlation Between Citigroup and 98877DAC9

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citigroup and 98877DAC9 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 98877DAC9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ZF North America, you can compare the effects of market volatilities on Citigroup and 98877DAC9 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 98877DAC9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 98877DAC9.

Diversification Opportunities for Citigroup and 98877DAC9

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Citigroup and 98877DAC9 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ZF North America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZF North America 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 98877DAC9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZF North America has no effect on the direction of Citigroup i.e., Citigroup and 98877DAC9 go up and down completely randomly.

Pair Corralation between Citigroup and 98877DAC9

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.9 times more return on investment than 98877DAC9. However, Citigroup is 3.9 times more volatile than ZF North America. It trades about 0.11 of its potential returns per unit of risk. ZF North America is currently generating about 0.01 per unit of risk. If you would invest  4,642  in Citigroup on September 5, 2024 and sell it today you would earn a total of  2,508  from holding Citigroup or generate 54.03% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy82.26%
ValuesDaily Returns

Citigroup  vs.  ZF North America

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
ZF North America 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days ZF North America has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 98877DAC9 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Citigroup and 98877DAC9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and 98877DAC9

The main advantage of trading using opposite Citigroup and 98877DAC9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 98877DAC9 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 98877DAC9 will offset losses from the drop in 98877DAC9's long position.
The idea behind Citigroup and ZF North America 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.
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.