Correlation Between Citigroup and Wesure Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Wesure Global 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 Wesure Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Wesure Global Tech, you can compare the effects of market volatilities on Citigroup and Wesure Global 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 Wesure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wesure Global.
Diversification Opportunities for Citigroup and Wesure Global
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Wesure is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wesure Global Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesure Global Tech 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 Wesure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesure Global Tech has no effect on the direction of Citigroup i.e., Citigroup and Wesure Global go up and down completely randomly.
Pair Corralation between Citigroup and Wesure Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.57 times less return on investment than Wesure Global. But when comparing it to its historical volatility, Citigroup is 1.24 times less risky than Wesure Global. It trades about 0.26 of its potential returns per unit of risk. Wesure Global Tech is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 39,080 in Wesure Global Tech on September 1, 2024 and sell it today you would earn a total of 10,660 from holding Wesure Global Tech or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 85.71% |
| Values | Daily Returns |
Citigroup vs. Wesure Global Tech
Performance |
| Timeline |
| Citigroup |
| Wesure Global Tech |
Citigroup and Wesure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wesure Global
The main advantage of trading using opposite Citigroup and Wesure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wesure Global 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 Wesure Global will offset losses from the drop in Wesure Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wesure Global vs. Israel Land Development | Wesure Global vs. El Al Israel | Wesure Global vs. Lesico | Wesure Global vs. Mivtach Shamir |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |