Correlation Between Citigroup and Via Renewables
Can any of the company-specific risk be diversified away by investing in both Citigroup and Via Renewables 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 Via Renewables into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Via Renewables, you can compare the effects of market volatilities on Citigroup and Via Renewables 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 Via Renewables. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Via Renewables.
Diversification Opportunities for Citigroup and Via Renewables
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Via is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Via Renewables in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Renewables 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 Via Renewables. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Renewables has no effect on the direction of Citigroup i.e., Citigroup and Via Renewables go up and down completely randomly.
Pair Corralation between Citigroup and Via Renewables
If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. Via Renewables
Performance |
| Timeline |
| Citigroup |
| Via Renewables |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Via Renewables Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Via Renewables
The main advantage of trading using opposite Citigroup and Via Renewables positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Via Renewables 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 Via Renewables will offset losses from the drop in Via Renewables' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Via Renewables vs. Entergy Texas | Via Renewables vs. Centrais Electricas Brasileiras | Via Renewables vs. IDACORP | Via Renewables vs. MGE Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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