Correlation Between Citigroup and UCHUMI SUPERMARKET
Can any of the company-specific risk be diversified away by investing in both Citigroup and UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and UCHUMI SUPERMARKET LTD, you can compare the effects of market volatilities on Citigroup and UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and UCHUMI SUPERMARKET.
Diversification Opportunities for Citigroup and UCHUMI SUPERMARKET
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and UCHUMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and UCHUMI SUPERMARKET LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UCHUMI SUPERMARKET LTD 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 UCHUMI SUPERMARKET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UCHUMI SUPERMARKET LTD has no effect on the direction of Citigroup i.e., Citigroup and UCHUMI SUPERMARKET go up and down completely randomly.
Pair Corralation between Citigroup and UCHUMI SUPERMARKET
If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Citigroup vs. UCHUMI SUPERMARKET LTD
Performance |
| Timeline |
| Citigroup |
| UCHUMI SUPERMARKET LTD |
Citigroup and UCHUMI SUPERMARKET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and UCHUMI SUPERMARKET
The main advantage of trading using opposite Citigroup and UCHUMI SUPERMARKET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, UCHUMI SUPERMARKET 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 UCHUMI SUPERMARKET will offset losses from the drop in UCHUMI SUPERMARKET's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| UCHUMI SUPERMARKET vs. YETU MICROFINANCE PLC | UCHUMI SUPERMARKET vs. CRDB BANK LTD | UCHUMI SUPERMARKET vs. NATION MEDIA GROUP | UCHUMI SUPERMARKET vs. MWALIMU MERCIAL BANK |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |