Correlation Between Disney and CITIGROUP
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By analyzing existing cross correlation between Walt Disney and CITIGROUP INC, 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
Very weak diversification
The 3 months correlation between Disney and CITIGROUP is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 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 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 under-perform the CITIGROUP. In addition to that, Disney is 3.15 times more volatile than CITIGROUP INC. It trades about -0.14 of its total potential returns per unit of risk. CITIGROUP INC is currently generating about 0.01 per unit of volatility. If you would invest 8,757 in CITIGROUP INC on January 25, 2025 and sell it today you would earn a total of 17.00 from holding CITIGROUP INC or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Walt Disney vs. CITIGROUP INC
Performance |
| Timeline |
| Walt Disney |
| CITIGROUP INC |
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.The idea behind Walt Disney 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. Sun Life Financial | CITIGROUP vs. Emerson Radio | CITIGROUP vs. ANTA Sports Products | CITIGROUP vs. Canlan Ice Sports |
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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