Correlation Between Gentex and CITIGROUP
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By analyzing existing cross correlation between Gentex and CITIGROUP INC 6625, you can compare the effects of market volatilities on Gentex 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 Gentex with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentex and CITIGROUP.
Diversification Opportunities for Gentex and CITIGROUP
Good diversification
The 3 months correlation between Gentex and CITIGROUP is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gentex and CITIGROUP INC 6625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6625 and Gentex 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 Gentex 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 6625 has no effect on the direction of Gentex i.e., Gentex and CITIGROUP go up and down completely randomly.
Pair Corralation between Gentex and CITIGROUP
Given the investment horizon of 90 days Gentex is expected to generate 1.9 times more return on investment than CITIGROUP. However, Gentex is 1.9 times more volatile than CITIGROUP INC 6625. It trades about 0.09 of its potential returns per unit of risk. CITIGROUP INC 6625 is currently generating about -0.04 per unit of risk. If you would invest 3,009 in Gentex on September 4, 2024 and sell it today you would earn a total of 61.00 from holding Gentex or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gentex vs. CITIGROUP INC 6625
Performance |
| Timeline |
| Gentex |
| CITIGROUP INC 6625 |
Gentex and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentex and CITIGROUP
The main advantage of trading using opposite Gentex and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentex 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 Gentex and CITIGROUP INC 6625 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. BBB Foods | CITIGROUP vs. The Joint Corp | CITIGROUP vs. Viemed Healthcare | CITIGROUP vs. Beyond Meat |
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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