Correlation Between Citigroup and Terawulf
Can any of the company-specific risk be diversified away by investing in both Citigroup and Terawulf 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 Terawulf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Terawulf, you can compare the effects of market volatilities on Citigroup and Terawulf 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 Terawulf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Terawulf.
Diversification Opportunities for Citigroup and Terawulf
Very poor diversification
The 3 months correlation between Citigroup and Terawulf is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Terawulf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terawulf 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 Terawulf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terawulf has no effect on the direction of Citigroup i.e., Citigroup and Terawulf go up and down completely randomly.
Pair Corralation between Citigroup and Terawulf
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.6 times less return on investment than Terawulf. But when comparing it to its historical volatility, Citigroup is 4.89 times less risky than Terawulf. It trades about 0.08 of its potential returns per unit of risk. Terawulf is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 143.00 in Terawulf on August 31, 2024 and sell it today you would earn a total of 646.00 from holding Terawulf or generate 451.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Terawulf
Performance |
| Timeline |
| Citigroup |
| Terawulf |
Citigroup and Terawulf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Terawulf
The main advantage of trading using opposite Citigroup and Terawulf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Terawulf 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 Terawulf will offset losses from the drop in Terawulf's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Terawulf vs. Iris Energy | Terawulf vs. Stronghold Digital Mining | Terawulf vs. Argo Blockchain PLC | Terawulf vs. Bitfarms |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |