Correlation Between Citigroup and Zoo Digital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zoo Digital 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 Zoo Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zoo Digital Group, you can compare the effects of market volatilities on Citigroup and Zoo Digital 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 Zoo Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zoo Digital.
Diversification Opportunities for Citigroup and Zoo Digital
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Zoo is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zoo Digital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoo Digital Group 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 Zoo Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoo Digital Group has no effect on the direction of Citigroup i.e., Citigroup and Zoo Digital go up and down completely randomly.
Pair Corralation between Citigroup and Zoo Digital
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than Zoo Digital. However, Citigroup is 3.65 times less risky than Zoo Digital. It trades about 0.08 of its potential returns per unit of risk. Zoo Digital Group is currently generating about -0.03 per unit of risk. If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.67% |
| Values | Daily Returns |
Citigroup vs. Zoo Digital Group
Performance |
| Timeline |
| Citigroup |
| Zoo Digital Group |
Citigroup and Zoo Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zoo Digital
The main advantage of trading using opposite Citigroup and Zoo Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zoo Digital 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 Zoo Digital will offset losses from the drop in Zoo Digital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zoo Digital vs. SupplyMe Capital PLC | Zoo Digital vs. Lloyds Banking Group | Zoo Digital vs. Premier African Minerals | Zoo Digital vs. SANTANDER UK 8 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |