Correlation Between Citigroup and Vitasoy International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vitasoy International 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 Vitasoy International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vitasoy International Holdings, you can compare the effects of market volatilities on Citigroup and Vitasoy International 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 Vitasoy International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vitasoy International.
Diversification Opportunities for Citigroup and Vitasoy International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Vitasoy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vitasoy International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitasoy International 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 Vitasoy International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitasoy International has no effect on the direction of Citigroup i.e., Citigroup and Vitasoy International go up and down completely randomly.
Pair Corralation between Citigroup and Vitasoy International
If you would invest 4,135 in Citigroup on December 2, 2024 and sell it today you would earn a total of 3,860 from holding Citigroup or generate 93.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Vitasoy International Holdings
Performance |
| Timeline |
| Citigroup |
| Vitasoy International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Vitasoy International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vitasoy International
The main advantage of trading using opposite Citigroup and Vitasoy International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vitasoy International 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 Vitasoy International will offset losses from the drop in Vitasoy International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Vitasoy International vs. Premier Foods Plc | Vitasoy International vs. Torque Lifestyle Brands | Vitasoy International vs. Naturally Splendid Enterprises | Vitasoy International vs. Aryzta AG PK |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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