Correlation Between Citigroup and Expro Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Expro 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 Expro Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Expro Group Holdings, you can compare the effects of market volatilities on Citigroup and Expro 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 Expro Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Expro Group.
Diversification Opportunities for Citigroup and Expro Group
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Expro is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Expro Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expro Group Holdings 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 Expro Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expro Group Holdings has no effect on the direction of Citigroup i.e., Citigroup and Expro Group go up and down completely randomly.
Pair Corralation between Citigroup and Expro Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.58 times more return on investment than Expro Group. However, Citigroup is 1.74 times less risky than Expro Group. It trades about 0.08 of its potential returns per unit of risk. Expro Group Holdings is currently generating about -0.01 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Expro Group Holdings
Performance |
| Timeline |
| Citigroup |
| Expro Group Holdings |
Citigroup and Expro Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Expro Group
The main advantage of trading using opposite Citigroup and Expro Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Expro 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 Expro Group will offset losses from the drop in Expro Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Expro Group vs. ChampionX | Expro Group vs. Ranger Energy Services | Expro Group vs. Cactus Inc | Expro Group vs. MRC Global |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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