Correlation Between NYSE Composite and CITIGROUP
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By analyzing existing cross correlation between NYSE Composite and CITIGROUP INC 585, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and CITIGROUP.
Diversification Opportunities for NYSE Composite and CITIGROUP
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between NYSE and CITIGROUP is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and CITIGROUP go up and down completely randomly.
Pair Corralation between NYSE Composite and CITIGROUP
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.35 times more return on investment than CITIGROUP. However, NYSE Composite is 2.85 times less risky than CITIGROUP. It trades about 0.08 of its potential returns per unit of risk. CITIGROUP INC 585 is currently generating about 0.0 per unit of risk. If you would invest 1,547,479 in NYSE Composite on August 25, 2024 and sell it today you would earn a total of 464,866 from holding NYSE Composite or generate 30.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 49.9% |
| Values | Daily Returns |
NYSE Composite vs. CITIGROUP INC 585
Performance |
| Timeline |
NYSE Composite and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
CITIGROUP INC 585
Pair trading matchups for CITIGROUP
Pair Trading with NYSE Composite and CITIGROUP
The main advantage of trading using opposite NYSE Composite and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Glacier Bancorp | NYSE Composite vs. LithiumBank Resources Corp | NYSE Composite vs. Stepstone Group | NYSE Composite vs. Pintec Technology 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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