Correlation Between Citigroup and VERA KONSEPT
Can any of the company-specific risk be diversified away by investing in both Citigroup and VERA KONSEPT 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 VERA KONSEPT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and VERA KONSEPT GMYO, you can compare the effects of market volatilities on Citigroup and VERA KONSEPT 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 VERA KONSEPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and VERA KONSEPT.
Diversification Opportunities for Citigroup and VERA KONSEPT
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and VERA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and VERA KONSEPT GMYO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERA KONSEPT GMYO 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 VERA KONSEPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERA KONSEPT GMYO has no effect on the direction of Citigroup i.e., Citigroup and VERA KONSEPT go up and down completely randomly.
Pair Corralation between Citigroup and VERA KONSEPT
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.85 times more return on investment than VERA KONSEPT. However, Citigroup is 1.18 times less risky than VERA KONSEPT. It trades about 0.0 of its potential returns per unit of risk. VERA KONSEPT GMYO is currently generating about -0.44 per unit of risk. If you would invest 7,939 in Citigroup on November 29, 2024 and sell it today you would lose (32.00) from holding Citigroup or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. VERA KONSEPT GMYO
Performance |
| Timeline |
| Citigroup |
| VERA KONSEPT GMYO |
Citigroup and VERA KONSEPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and VERA KONSEPT
The main advantage of trading using opposite Citigroup and VERA KONSEPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, VERA KONSEPT 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 VERA KONSEPT will offset losses from the drop in VERA KONSEPT's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| VERA KONSEPT vs. KOC METALURJI | VERA KONSEPT vs. Gentas Genel Metal | VERA KONSEPT vs. Politeknik Metal Sanayi | VERA KONSEPT vs. MEGA METAL |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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