Correlation Between Nike and CITIGROUP

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Nike and CITIGROUP at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nike and CITIGROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nike Inc and CITIGROUP INC 44, you can compare the effects of market volatilities on Nike 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 Nike with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nike and CITIGROUP.

Diversification Opportunities for Nike and CITIGROUP

0.02
  Correlation Coefficient

Significant diversification

The 3 months correlation between Nike and CITIGROUP is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nike Inc and CITIGROUP INC 44 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 44 and Nike 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 Nike Inc 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 44 has no effect on the direction of Nike i.e., Nike and CITIGROUP go up and down completely randomly.

Pair Corralation between Nike and CITIGROUP

Considering the 90-day investment horizon Nike Inc is expected to under-perform the CITIGROUP. In addition to that, Nike is 3.98 times more volatile than CITIGROUP INC 44. It trades about -0.02 of its total potential returns per unit of risk. CITIGROUP INC 44 is currently generating about 0.01 per unit of volatility. If you would invest  9,852  in CITIGROUP INC 44 on September 3, 2024 and sell it today you would earn a total of  123.00  from holding CITIGROUP INC 44 or generate 1.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

Nike Inc  vs.  CITIGROUP INC 44

 Performance 
       Timeline  
Nike Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nike Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Nike is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
CITIGROUP INC 44 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in CITIGROUP INC 44 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CITIGROUP is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Nike and CITIGROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Nike and CITIGROUP

The main advantage of trading using opposite Nike and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nike 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.
Nike vs. Designer Brands
Nike vs. Steven Madden
Nike vs. Weyco Group
Nike vs. Rocky Brands
The idea behind Nike Inc and CITIGROUP INC 44 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. Ralph Lauren Corp
CITIGROUP vs. Nike Inc
CITIGROUP vs. Avient Corp
CITIGROUP vs. Sealed Air
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
CEOs Directory
Screen CEOs from public companies around the world


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY