Correlation Between Citigroup and ASURE SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Citigroup and ASURE SOFTWARE 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 ASURE SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ASURE SOFTWARE, you can compare the effects of market volatilities on Citigroup and ASURE SOFTWARE 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 ASURE SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ASURE SOFTWARE.
Diversification Opportunities for Citigroup and ASURE SOFTWARE
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and ASURE is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ASURE SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASURE SOFTWARE 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 ASURE SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASURE SOFTWARE has no effect on the direction of Citigroup i.e., Citigroup and ASURE SOFTWARE go up and down completely randomly.
Pair Corralation between Citigroup and ASURE SOFTWARE
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.66 times more return on investment than ASURE SOFTWARE. However, Citigroup is 1.51 times less risky than ASURE SOFTWARE. It trades about 0.09 of its potential returns per unit of risk. ASURE SOFTWARE is currently generating about 0.03 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.43% |
| Values | Daily Returns |
Citigroup vs. ASURE SOFTWARE
Performance |
| Timeline |
| Citigroup |
| ASURE SOFTWARE |
Citigroup and ASURE SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ASURE SOFTWARE
The main advantage of trading using opposite Citigroup and ASURE SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ASURE SOFTWARE 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 ASURE SOFTWARE will offset losses from the drop in ASURE SOFTWARE's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ASURE SOFTWARE vs. PennyMac Mortgage Investment | ASURE SOFTWARE vs. Autohome ADR | ASURE SOFTWARE vs. bet at home AG | ASURE SOFTWARE vs. NURAN WIRELESS INC |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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