Correlation Between Citigroup and DENTSPLY SIRONA
Can any of the company-specific risk be diversified away by investing in both Citigroup and DENTSPLY SIRONA 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 DENTSPLY SIRONA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and DENTSPLY SIRONA, you can compare the effects of market volatilities on Citigroup and DENTSPLY SIRONA 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 DENTSPLY SIRONA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DENTSPLY SIRONA.
Diversification Opportunities for Citigroup and DENTSPLY SIRONA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and DENTSPLY is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DENTSPLY SIRONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DENTSPLY SIRONA 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 DENTSPLY SIRONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DENTSPLY SIRONA has no effect on the direction of Citigroup i.e., Citigroup and DENTSPLY SIRONA go up and down completely randomly.
Pair Corralation between Citigroup and DENTSPLY SIRONA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.85 times more return on investment than DENTSPLY SIRONA. However, Citigroup is 1.17 times less risky than DENTSPLY SIRONA. It trades about 0.06 of its potential returns per unit of risk. DENTSPLY SIRONA is currently generating about 0.01 per unit of risk. If you would invest 4,708 in Citigroup on October 11, 2024 and sell it today you would earn a total of 2,618 from holding Citigroup or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Citigroup vs. DENTSPLY SIRONA
Performance |
| Timeline |
| Citigroup |
| DENTSPLY SIRONA |
Citigroup and DENTSPLY SIRONA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and DENTSPLY SIRONA
The main advantage of trading using opposite Citigroup and DENTSPLY SIRONA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DENTSPLY SIRONA 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 DENTSPLY SIRONA will offset losses from the drop in DENTSPLY SIRONA's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| DENTSPLY SIRONA vs. Jefferies Financial Group | DENTSPLY SIRONA vs. Brpr Corporate Offices | DENTSPLY SIRONA vs. Sumitomo Mitsui Financial | DENTSPLY SIRONA vs. Electronic Arts |
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 Stocks Directory module to find actively traded stocks across global markets.
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