Correlation Between Citigroup and Veea
Can any of the company-specific risk be diversified away by investing in both Citigroup and Veea 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 Veea into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Veea Inc, you can compare the effects of market volatilities on Citigroup and Veea 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 Veea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Veea.
Diversification Opportunities for Citigroup and Veea
Weak diversification
The 3 months correlation between Citigroup and Veea is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Veea Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veea Inc 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 Veea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veea Inc has no effect on the direction of Citigroup i.e., Citigroup and Veea go up and down completely randomly.
Pair Corralation between Citigroup and Veea
Taking into account the 90-day investment horizon Citigroup is expected to generate 18.62 times less return on investment than Veea. But when comparing it to its historical volatility, Citigroup is 16.9 times less risky than Veea. It trades about 0.12 of its potential returns per unit of risk. Veea Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Veea Inc on September 12, 2024 and sell it today you would earn a total of 9.50 from holding Veea Inc or generate 190.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 67.98% |
| Values | Daily Returns |
Citigroup vs. Veea Inc
Performance |
| Timeline |
| Citigroup |
| Veea Inc |
Citigroup and Veea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Veea
The main advantage of trading using opposite Citigroup and Veea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Veea 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 Veea will offset losses from the drop in Veea's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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