Correlation Between Citigroup and Venator Materials
Can any of the company-specific risk be diversified away by investing in both Citigroup and Venator Materials 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 Venator Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Venator Materials PLC, you can compare the effects of market volatilities on Citigroup and Venator Materials 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 Venator Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Venator Materials.
Diversification Opportunities for Citigroup and Venator Materials
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Venator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Venator Materials PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Venator Materials PLC 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 Venator Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Venator Materials PLC has no effect on the direction of Citigroup i.e., Citigroup and Venator Materials go up and down completely randomly.
Pair Corralation between Citigroup and Venator Materials
If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Venator Materials PLC
Performance |
| Timeline |
| Citigroup |
| Venator Materials PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Venator Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Venator Materials
The main advantage of trading using opposite Citigroup and Venator Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Venator Materials 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 Venator Materials will offset losses from the drop in Venator Materials' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Venator Materials vs. CVR Partners LP | Venator Materials vs. Flexible Solutions International | Venator Materials vs. CF Industries Holdings | Venator Materials vs. Eastman Chemical |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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