Correlation Between Citigroup and VALORA HLDG
Can any of the company-specific risk be diversified away by investing in both Citigroup and VALORA HLDG 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 VALORA HLDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and VALORA HLDG OPEN, you can compare the effects of market volatilities on Citigroup and VALORA HLDG 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 VALORA HLDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and VALORA HLDG.
Diversification Opportunities for Citigroup and VALORA HLDG
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and VALORA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and VALORA HLDG OPEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VALORA HLDG OPEN 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 VALORA HLDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VALORA HLDG OPEN has no effect on the direction of Citigroup i.e., Citigroup and VALORA HLDG go up and down completely randomly.
Pair Corralation between Citigroup and VALORA HLDG
If you would invest 4,950 in Citigroup on September 20, 2024 and sell it today you would earn a total of 2,162 from holding Citigroup or generate 43.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. VALORA HLDG OPEN
Performance |
| Timeline |
| Citigroup |
| VALORA HLDG OPEN |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and VALORA HLDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and VALORA HLDG
The main advantage of trading using opposite Citigroup and VALORA HLDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, VALORA HLDG 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 VALORA HLDG will offset losses from the drop in VALORA HLDG's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| VALORA HLDG vs. Pictet Ch Precious | VALORA HLDG vs. Baloise Swiss Property | VALORA HLDG vs. CSIF I Bond | VALORA HLDG vs. Synchrony Swiss Real |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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