Correlation Between Ford and CITIGROUP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and CITIGROUP INC 585, you can compare the effects of market volatilities on Ford 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 Ford with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CITIGROUP.
Diversification Opportunities for Ford and CITIGROUP
Very good diversification
The 3 months correlation between Ford and CITIGROUP is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CITIGROUP INC 585 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 585 and Ford 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 Ford Motor 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 585 has no effect on the direction of Ford i.e., Ford and CITIGROUP go up and down completely randomly.
Pair Corralation between Ford and CITIGROUP
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.37 times more return on investment than CITIGROUP. However, Ford is 2.37 times more volatile than CITIGROUP INC 585. It trades about 0.0 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about -0.21 per unit of risk. If you would invest 1,122 in Ford Motor on August 28, 2024 and sell it today you would lose (12.00) from holding Ford Motor or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Ford Motor vs. CITIGROUP INC 585
Performance |
| Timeline |
| Ford Motor |
| CITIGROUP INC 585 |
Ford and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CITIGROUP
The main advantage of trading using opposite Ford and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford 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 Ford Motor and CITIGROUP INC 585 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. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab Corp |
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.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |