Correlation Between Citigroup and Zagrebacka Banka
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zagrebacka Banka 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 Zagrebacka Banka into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zagrebacka Banka dd, you can compare the effects of market volatilities on Citigroup and Zagrebacka Banka 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 Zagrebacka Banka. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zagrebacka Banka.
Diversification Opportunities for Citigroup and Zagrebacka Banka
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Zagrebacka is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zagrebacka Banka dd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zagrebacka Banka 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 Zagrebacka Banka. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zagrebacka Banka has no effect on the direction of Citigroup i.e., Citigroup and Zagrebacka Banka go up and down completely randomly.
Pair Corralation between Citigroup and Zagrebacka Banka
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.85 times less return on investment than Zagrebacka Banka. In addition to that, Citigroup is 1.06 times more volatile than Zagrebacka Banka dd. It trades about 0.08 of its total potential returns per unit of risk. Zagrebacka Banka dd is currently generating about 0.15 per unit of volatility. If you would invest 852.00 in Zagrebacka Banka dd on September 13, 2024 and sell it today you would earn a total of 1,658 from holding Zagrebacka Banka dd or generate 194.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.18% |
| Values | Daily Returns |
Citigroup vs. Zagrebacka Banka dd
Performance |
| Timeline |
| Citigroup |
| Zagrebacka Banka |
Citigroup and Zagrebacka Banka Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zagrebacka Banka
The main advantage of trading using opposite Citigroup and Zagrebacka Banka positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zagrebacka Banka 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 Zagrebacka Banka will offset losses from the drop in Zagrebacka Banka's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zagrebacka Banka vs. Dalekovod dd | Zagrebacka Banka vs. Institut IGH dd | Zagrebacka Banka vs. Podravka Prehrambena Industrija |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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