Correlation Between Citigroup and White Pearl
Can any of the company-specific risk be diversified away by investing in both Citigroup and White Pearl 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 White Pearl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and White Pearl Technology, you can compare the effects of market volatilities on Citigroup and White Pearl 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 White Pearl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and White Pearl.
Diversification Opportunities for Citigroup and White Pearl
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and White is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and White Pearl Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Pearl Technology 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 White Pearl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Pearl Technology has no effect on the direction of Citigroup i.e., Citigroup and White Pearl go up and down completely randomly.
Pair Corralation between Citigroup and White Pearl
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.33 times less return on investment than White Pearl. But when comparing it to its historical volatility, Citigroup is 3.08 times less risky than White Pearl. It trades about 0.24 of its potential returns per unit of risk. White Pearl Technology is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 344.00 in White Pearl Technology on August 25, 2024 and sell it today you would earn a total of 282.00 from holding White Pearl Technology or generate 81.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. White Pearl Technology
Performance |
| Timeline |
| Citigroup |
| White Pearl Technology |
Citigroup and White Pearl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and White Pearl
The main advantage of trading using opposite Citigroup and White Pearl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, White Pearl 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 White Pearl will offset losses from the drop in White Pearl's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| White Pearl vs. AstraZeneca PLC | White Pearl vs. Investor AB ser | White Pearl vs. Investor AB ser | White Pearl vs. Atlas Copco AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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