Correlation Between Citigroup and Workspace Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Workspace 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 Workspace Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Workspace Group PLC, you can compare the effects of market volatilities on Citigroup and Workspace 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 Workspace Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Workspace Group.
Diversification Opportunities for Citigroup and Workspace Group
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Workspace is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC 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 Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Citigroup i.e., Citigroup and Workspace Group go up and down completely randomly.
Pair Corralation between Citigroup and Workspace Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Workspace Group. However, Citigroup is 1.03 times more volatile than Workspace Group PLC. It trades about 0.23 of its potential returns per unit of risk. Workspace Group PLC is currently generating about -0.22 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Workspace Group PLC
Performance |
| Timeline |
| Citigroup |
| Workspace Group PLC |
Citigroup and Workspace Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Workspace Group
The main advantage of trading using opposite Citigroup and Workspace Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Workspace 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 Workspace Group will offset losses from the drop in Workspace Group's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Workspace Group vs. Deltex Medical Group | Workspace Group vs. Prosiebensat 1 Media | Workspace Group vs. CompuGroup Medical AG | Workspace Group vs. United States Steel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |