Correlation Between Alphabet and CITIGROUP
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By analyzing existing cross correlation between Alphabet Inc Class C and CITIGROUP INC 465, you can compare the effects of market volatilities on Alphabet 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 Alphabet with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and CITIGROUP.
Diversification Opportunities for Alphabet and CITIGROUP
Pay attention - limited upside
The 3 months correlation between Alphabet and CITIGROUP is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C and CITIGROUP INC 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 465 and Alphabet 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 Alphabet Inc Class C 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 465 has no effect on the direction of Alphabet i.e., Alphabet and CITIGROUP go up and down completely randomly.
Pair Corralation between Alphabet and CITIGROUP
Given the investment horizon of 90 days Alphabet Inc Class C is expected to under-perform the CITIGROUP. In addition to that, Alphabet is 1.98 times more volatile than CITIGROUP INC 465. It trades about -0.02 of its total potential returns per unit of risk. CITIGROUP INC 465 is currently generating about 0.07 per unit of volatility. If you would invest 8,994 in CITIGROUP INC 465 on September 1, 2024 and sell it today you would earn a total of 113.00 from holding CITIGROUP INC 465 or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alphabet Inc Class C vs. CITIGROUP INC 465
Performance |
| Timeline |
| Alphabet Class C |
| CITIGROUP INC 465 |
Alphabet and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and CITIGROUP
The main advantage of trading using opposite Alphabet and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet 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 Alphabet Inc Class C and CITIGROUP INC 465 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. SunOpta | CITIGROUP vs. National CineMedia | CITIGROUP vs. National Vision Holdings | CITIGROUP vs. Weibo 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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