Correlation Between Citigroup and Social Life
Can any of the company-specific risk be diversified away by investing in both Citigroup and Social Life 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 Social Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Social Life Network, you can compare the effects of market volatilities on Citigroup and Social Life 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 Social Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Social Life.
Diversification Opportunities for Citigroup and Social Life
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Social is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Social Life Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Social Life Network 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 Social Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Social Life Network has no effect on the direction of Citigroup i.e., Citigroup and Social Life go up and down completely randomly.
Pair Corralation between Citigroup and Social Life
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.55 times less return on investment than Social Life. But when comparing it to its historical volatility, Citigroup is 12.54 times less risky than Social Life. It trades about 0.38 of its potential returns per unit of risk. Social Life Network is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Social Life Network on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Social Life Network or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Social Life Network
Performance |
| Timeline |
| Citigroup |
| Social Life Network |
Citigroup and Social Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Social Life
The main advantage of trading using opposite Citigroup and Social Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Social Life 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 Social Life will offset losses from the drop in Social Life's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Social Life vs. Tautachrome | Social Life vs. Dear Cashmere Holding | Social Life vs. Nukkleus | Social Life vs. Fernhill Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |