Correlation Between Citigroup and ZoomInfo Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and ZoomInfo Technologies 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 ZoomInfo Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ZoomInfo Technologies, you can compare the effects of market volatilities on Citigroup and ZoomInfo Technologies 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 ZoomInfo Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ZoomInfo Technologies.
Diversification Opportunities for Citigroup and ZoomInfo Technologies
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and ZoomInfo is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ZoomInfo Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZoomInfo Technologies 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 ZoomInfo Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZoomInfo Technologies has no effect on the direction of Citigroup i.e., Citigroup and ZoomInfo Technologies go up and down completely randomly.
Pair Corralation between Citigroup and ZoomInfo Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.41 times more return on investment than ZoomInfo Technologies. However, Citigroup is 2.42 times less risky than ZoomInfo Technologies. It trades about 0.21 of its potential returns per unit of risk. ZoomInfo Technologies is currently generating about 0.06 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ZoomInfo Technologies
Performance |
| Timeline |
| Citigroup |
| ZoomInfo Technologies |
Citigroup and ZoomInfo Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ZoomInfo Technologies
The main advantage of trading using opposite Citigroup and ZoomInfo Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ZoomInfo Technologies 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 ZoomInfo Technologies will offset losses from the drop in ZoomInfo Technologies' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ZoomInfo Technologies vs. MondayCom | ZoomInfo Technologies vs. Datadog | ZoomInfo Technologies vs. Gitlab Inc | ZoomInfo Technologies vs. HubSpot |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |