Correlation Between Citigroup and Zevia Pbc
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zevia Pbc 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 Zevia Pbc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zevia Pbc, you can compare the effects of market volatilities on Citigroup and Zevia Pbc 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 Zevia Pbc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zevia Pbc.
Diversification Opportunities for Citigroup and Zevia Pbc
Very poor diversification
The 3 months correlation between Citigroup and Zevia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zevia Pbc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zevia Pbc 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 Zevia Pbc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zevia Pbc has no effect on the direction of Citigroup i.e., Citigroup and Zevia Pbc go up and down completely randomly.
Pair Corralation between Citigroup and Zevia Pbc
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.08 times less return on investment than Zevia Pbc. But when comparing it to its historical volatility, Citigroup is 3.89 times less risky than Zevia Pbc. It trades about 0.12 of its potential returns per unit of risk. Zevia Pbc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 215.00 in Zevia Pbc on August 26, 2024 and sell it today you would earn a total of 4.00 from holding Zevia Pbc or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Zevia Pbc
Performance |
| Timeline |
| Citigroup |
| Zevia Pbc |
Citigroup and Zevia Pbc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zevia Pbc
The main advantage of trading using opposite Citigroup and Zevia Pbc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zevia Pbc 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 Zevia Pbc will offset losses from the drop in Zevia Pbc's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Zevia Pbc vs. Hill Street Beverage | Zevia Pbc vs. Vita Coco | Zevia Pbc vs. Coca Cola Femsa SAB | Zevia Pbc vs. Coca Cola European Partners |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |