Correlation Between Citigroup and Zivo Bioscience
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zivo Bioscience 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 Zivo Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zivo Bioscience, you can compare the effects of market volatilities on Citigroup and Zivo Bioscience 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 Zivo Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zivo Bioscience.
Diversification Opportunities for Citigroup and Zivo Bioscience
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Zivo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zivo Bioscience in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zivo Bioscience 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 Zivo Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zivo Bioscience has no effect on the direction of Citigroup i.e., Citigroup and Zivo Bioscience go up and down completely randomly.
Pair Corralation between Citigroup and Zivo Bioscience
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.26 times more return on investment than Zivo Bioscience. However, Citigroup is 3.79 times less risky than Zivo Bioscience. It trades about 0.08 of its potential returns per unit of risk. Zivo Bioscience is currently generating about -0.19 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 | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
Citigroup vs. Zivo Bioscience
Performance |
| Timeline |
| Citigroup |
| Zivo Bioscience |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Zivo Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zivo Bioscience
The main advantage of trading using opposite Citigroup and Zivo Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zivo Bioscience 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 Zivo Bioscience will offset losses from the drop in Zivo Bioscience's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zivo Bioscience vs. RenovoRx | Zivo Bioscience vs. Pasithea Therapeutics Corp | Zivo Bioscience vs. Quoin Pharmaceuticals Ltd | Zivo Bioscience vs. Erasca Inc |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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