Correlation Between Citigroup and Zwipe AS
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zwipe AS 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 Zwipe AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zwipe AS, you can compare the effects of market volatilities on Citigroup and Zwipe AS 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 Zwipe AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zwipe AS.
Diversification Opportunities for Citigroup and Zwipe AS
Excellent diversification
The 3 months correlation between Citigroup and Zwipe is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zwipe AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwipe AS 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 Zwipe AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwipe AS has no effect on the direction of Citigroup i.e., Citigroup and Zwipe AS go up and down completely randomly.
Pair Corralation between Citigroup and Zwipe AS
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.3 times more return on investment than Zwipe AS. However, Citigroup is 3.33 times less risky than Zwipe AS. It trades about 0.26 of its potential returns per unit of risk. Zwipe AS is currently generating about -0.29 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 | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Zwipe AS
Performance |
| Timeline |
| Citigroup |
| Zwipe AS |
Citigroup and Zwipe AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zwipe AS
The main advantage of trading using opposite Citigroup and Zwipe AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zwipe AS 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 Zwipe AS will offset losses from the drop in Zwipe AS's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zwipe AS vs. Upsales Technology AB | Zwipe AS vs. Nordic Asia Investment | Zwipe AS vs. Filo Mining Corp | Zwipe AS vs. Indutrade AB |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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