Correlation Between Citigroup and WeTrade Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and WeTrade Group 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 WeTrade Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and WeTrade Group Ordinary, you can compare the effects of market volatilities on Citigroup and WeTrade Group 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 WeTrade Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and WeTrade Group.
Diversification Opportunities for Citigroup and WeTrade Group
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and WeTrade is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WeTrade Group Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WeTrade Group Ordinary 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 WeTrade Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WeTrade Group Ordinary has no effect on the direction of Citigroup i.e., Citigroup and WeTrade Group go up and down completely randomly.
Pair Corralation between Citigroup and WeTrade Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.12 times more return on investment than WeTrade Group. However, Citigroup is 8.62 times less risky than WeTrade Group. It trades about 0.11 of its potential returns per unit of risk. WeTrade Group Ordinary is currently generating about -0.01 per unit of risk. If you would invest 4,553 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,431 from holding Citigroup or generate 53.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 51.21% |
| Values | Daily Returns |
Citigroup vs. WeTrade Group Ordinary
Performance |
| Timeline |
| Citigroup |
| WeTrade Group Ordinary |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and WeTrade Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and WeTrade Group
The main advantage of trading using opposite Citigroup and WeTrade Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, WeTrade Group 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 WeTrade Group will offset losses from the drop in WeTrade Group's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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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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