Correlation Between Citigroup and Vranken Pommery
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vranken Pommery 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 Vranken Pommery into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vranken Pommery Monopole Socit, you can compare the effects of market volatilities on Citigroup and Vranken Pommery 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 Vranken Pommery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vranken Pommery.
Diversification Opportunities for Citigroup and Vranken Pommery
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Vranken is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vranken Pommery Monopole Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vranken Pommery Mono 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 Vranken Pommery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vranken Pommery Mono has no effect on the direction of Citigroup i.e., Citigroup and Vranken Pommery go up and down completely randomly.
Pair Corralation between Citigroup and Vranken Pommery
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.33 times more return on investment than Vranken Pommery. However, Citigroup is 1.33 times more volatile than Vranken Pommery Monopole Socit. It trades about -0.08 of its potential returns per unit of risk. Vranken Pommery Monopole Socit is currently generating about -0.16 per unit of risk. If you would invest 8,051 in Citigroup on November 28, 2024 and sell it today you would lose (237.00) from holding Citigroup or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Vranken Pommery Monopole Socit
Performance |
| Timeline |
| Citigroup |
| Vranken Pommery Mono |
Citigroup and Vranken Pommery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vranken Pommery
The main advantage of trading using opposite Citigroup and Vranken Pommery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vranken Pommery 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 Vranken Pommery will offset losses from the drop in Vranken Pommery's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Vranken Pommery vs. Laurent Perrier | Vranken Pommery vs. Compagnie des Alpes | Vranken Pommery vs. Remy Cointreau | Vranken Pommery vs. Tessenderlo |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |