Correlation Between International Business and CITIGROUP
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By analyzing existing cross correlation between International Business Machines and CITIGROUP INC 585, you can compare the effects of market volatilities on International Business 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 International Business with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Business and CITIGROUP.
Diversification Opportunities for International Business and CITIGROUP
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between International and CITIGROUP is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine 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 International Business 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 International Business Machines 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 International Business i.e., International Business and CITIGROUP go up and down completely randomly.
Pair Corralation between International Business and CITIGROUP
Considering the 90-day investment horizon International Business Machines is expected to generate 0.79 times more return on investment than CITIGROUP. However, International Business Machines is 1.26 times less risky than CITIGROUP. It trades about 0.12 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about 0.02 per unit of risk. If you would invest 15,095 in International Business Machines on August 25, 2024 and sell it today you would earn a total of 7,202 from holding International Business Machines or generate 47.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 53.41% |
| Values | Daily Returns |
International Business Machine vs. CITIGROUP INC 585
Performance |
| Timeline |
| International Business |
| CITIGROUP INC 585 |
International Business and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Business and CITIGROUP
The main advantage of trading using opposite International Business and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Business 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.| International Business vs. CDW Corp | International Business vs. Eshallgo Class A | International Business vs. Amtech Systems | International Business vs. Gold Fields Ltd |
| CITIGROUP vs. Ironveld Plc | CITIGROUP vs. Employers Holdings | CITIGROUP vs. NI Holdings | CITIGROUP vs. ICC Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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