Correlation Between Datadog and CITIGROUP
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By analyzing existing cross correlation between Datadog and CITIGROUP INC, you can compare the effects of market volatilities on Datadog and CITIGROUP 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 Datadog with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datadog and CITIGROUP.
Diversification Opportunities for Datadog and CITIGROUP
Pay attention - limited upside
The 3 months correlation between Datadog and CITIGROUP is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Datadog and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and Datadog 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 Datadog are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC has no effect on the direction of Datadog i.e., Datadog and CITIGROUP go up and down completely randomly.
Pair Corralation between Datadog and CITIGROUP
Given the investment horizon of 90 days Datadog is expected to generate 8.35 times more return on investment than CITIGROUP. However, Datadog is 8.35 times more volatile than CITIGROUP INC. It trades about 0.33 of its potential returns per unit of risk. CITIGROUP INC is currently generating about -0.05 per unit of risk. If you would invest 12,556 in Datadog on September 3, 2024 and sell it today you would earn a total of 2,719 from holding Datadog or generate 21.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datadog vs. CITIGROUP INC
Performance |
| Timeline |
| Datadog |
| CITIGROUP INC |
Datadog and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datadog and CITIGROUP
The main advantage of trading using opposite Datadog and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datadog position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.The idea behind Datadog and CITIGROUP INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CITIGROUP vs. Centessa Pharmaceuticals PLC | CITIGROUP vs. Datadog | CITIGROUP vs. Teleflex Incorporated | CITIGROUP vs. Rackspace Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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