Correlation Between Disney and CITIGROUP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Disney and CITIGROUP 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 Disney and CITIGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walt Disney and CITIGROUP INC 475, you can compare the effects of market volatilities on Disney 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 Disney with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Disney and CITIGROUP.

Diversification Opportunities for Disney and CITIGROUP

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Disney and CITIGROUP is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and CITIGROUP INC 475 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 475 and Disney 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 Walt Disney 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 475 has no effect on the direction of Disney i.e., Disney and CITIGROUP go up and down completely randomly.

Pair Corralation between Disney and CITIGROUP

Considering the 90-day investment horizon Walt Disney is expected to generate 1.42 times more return on investment than CITIGROUP. However, Disney is 1.42 times more volatile than CITIGROUP INC 475. It trades about 0.05 of its potential returns per unit of risk. CITIGROUP INC 475 is currently generating about 0.02 per unit of risk. If you would invest  9,121  in Walt Disney on September 1, 2024 and sell it today you would earn a total of  2,626  from holding Walt Disney or generate 28.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy97.31%
ValuesDaily Returns

Walt Disney  vs.  CITIGROUP INC 475

 Performance 
       Timeline  
Walt Disney 

Risk-Adjusted Performance

24 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating forward indicators, Disney unveiled solid returns over the last few months and may actually be approaching a breakup point.
CITIGROUP INC 475 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CITIGROUP INC 475 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CITIGROUP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Disney and CITIGROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Disney and CITIGROUP

The main advantage of trading using opposite Disney and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney 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.
Disney vs. ADTRAN Inc
Disney vs. Belden Inc
Disney vs. ADC Therapeutics SA
Disney vs. Comtech Telecommunications Corp
The idea behind Walt Disney and CITIGROUP INC 475 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. Kura Sushi USA
CITIGROUP vs. Boston Properties
CITIGROUP vs. The Wendys Co
CITIGROUP vs. Hooker Furniture
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Bonds Directory
Find actively traded corporate debentures issued by US companies
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY