Correlation Between DXC Technology and Citigroup
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and Citigroup, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Citigroup.
Diversification Opportunities for DXC Technology and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and DXC Technology 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 DXC Technology 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 has no effect on the direction of DXC Technology i.e., DXC Technology and Citigroup go up and down completely randomly.
Pair Corralation between DXC Technology and Citigroup
If you would invest 127,853 in Citigroup on September 1, 2024 and sell it today you would earn a total of 16,147 from holding Citigroup or generate 12.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
DXC Technology vs. Citigroup
Performance |
| Timeline |
| DXC Technology |
| Citigroup |
DXC Technology and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Citigroup
The main advantage of trading using opposite DXC Technology and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. The Select Sector | DXC Technology vs. Promotora y Operadora | DXC Technology vs. SPDR Series Trust | DXC Technology vs. iShares Trust |
| Citigroup vs. Grupo Hotelero Santa | Citigroup vs. Costco Wholesale | Citigroup vs. DXC Technology | Citigroup vs. Prudential Financial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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