Correlation Between Ford and CITIGROUP
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By analyzing existing cross correlation between Ford Motor and CITIGROUP FDG INC, 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
Modest diversification
The 3 months correlation between Ford and CITIGROUP is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CITIGROUP FDG INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP FDG INC 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 FDG INC 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 0.41 times more return on investment than CITIGROUP. However, Ford Motor is 2.44 times less risky than CITIGROUP. It trades about 0.22 of its potential returns per unit of risk. CITIGROUP FDG INC is currently generating about -0.16 per unit of risk. If you would invest 1,022 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Ford Motor or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 35.0% |
| Values | Daily Returns |
Ford Motor vs. CITIGROUP FDG INC
Performance |
| Timeline |
| Ford Motor |
| CITIGROUP FDG INC |
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.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Jackson Financial | CITIGROUP vs. MetLife |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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