Correlation Between Citigroup and WIG Dividend
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By analyzing existing cross correlation between Citigroup and WIG Dividend, you can compare the effects of market volatilities on Citigroup and WIG Dividend 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 WIG Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and WIG Dividend.
Diversification Opportunities for Citigroup and WIG Dividend
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and WIG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and WIG Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIG Dividend 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 WIG Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIG Dividend has no effect on the direction of Citigroup i.e., Citigroup and WIG Dividend go up and down completely randomly.
Pair Corralation between Citigroup and WIG Dividend
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.35 times more return on investment than WIG Dividend. However, Citigroup is 2.35 times more volatile than WIG Dividend. It trades about 0.26 of its potential returns per unit of risk. WIG Dividend is currently generating about 0.11 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. WIG Dividend
Performance |
| Timeline |
Citigroup and WIG Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Citigroup
Pair trading matchups for Citigroup
WIG Dividend
Pair trading matchups for WIG Dividend
Pair Trading with Citigroup and WIG Dividend
The main advantage of trading using opposite Citigroup and WIG Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, WIG Dividend 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 WIG Dividend will offset losses from the drop in WIG Dividend's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| WIG Dividend vs. Cloud Technologies SA | WIG Dividend vs. Medicofarma Biotech SA | WIG Dividend vs. Mercator Medical SA | WIG Dividend vs. Skyline Investment SA |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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