Correlation Between Citigroup and Zinc8 Energy
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zinc8 Energy 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 Zinc8 Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zinc8 Energy Solutions, you can compare the effects of market volatilities on Citigroup and Zinc8 Energy 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 Zinc8 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zinc8 Energy.
Diversification Opportunities for Citigroup and Zinc8 Energy
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Zinc8 is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zinc8 Energy Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc8 Energy Solutions 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 Zinc8 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc8 Energy Solutions has no effect on the direction of Citigroup i.e., Citigroup and Zinc8 Energy go up and down completely randomly.
Pair Corralation between Citigroup and Zinc8 Energy
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than Zinc8 Energy. However, Citigroup is 3.69 times less risky than Zinc8 Energy. It trades about 0.26 of its potential returns per unit of risk. Zinc8 Energy Solutions is currently generating about -0.37 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Zinc8 Energy Solutions
Performance |
| Timeline |
| Citigroup |
| Zinc8 Energy Solutions |
Citigroup and Zinc8 Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zinc8 Energy
The main advantage of trading using opposite Citigroup and Zinc8 Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zinc8 Energy 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 Zinc8 Energy will offset losses from the drop in Zinc8 Energy's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zinc8 Energy vs. AFC Energy plc | Zinc8 Energy vs. Loop Energy | Zinc8 Energy vs. Sunrise New Energy | Zinc8 Energy vs. Energizer Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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