Correlation Between BANK MANDIRI and Citigroup
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By analyzing existing cross correlation between BANK MANDIRI and Citigroup, you can compare the effects of market volatilities on BANK MANDIRI 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 BANK MANDIRI with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANK MANDIRI and Citigroup.
Diversification Opportunities for BANK MANDIRI and Citigroup
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BANK and Citigroup is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding BANK MANDIRI and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and BANK MANDIRI 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 BANK MANDIRI 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 has no effect on the direction of BANK MANDIRI i.e., BANK MANDIRI and Citigroup go up and down completely randomly.
Pair Corralation between BANK MANDIRI and Citigroup
Assuming the 90 days trading horizon BANK MANDIRI is expected to under-perform the Citigroup. In addition to that, BANK MANDIRI is 1.05 times more volatile than Citigroup. It trades about -0.08 of its total potential returns per unit of risk. Citigroup is currently generating about 0.24 per unit of volatility. If you would invest 5,892 in Citigroup on September 1, 2024 and sell it today you would earn a total of 825.00 from holding Citigroup or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANK MANDIRI vs. Citigroup
Performance |
| Timeline |
| BANK MANDIRI |
| Citigroup |
BANK MANDIRI and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANK MANDIRI and Citigroup
The main advantage of trading using opposite BANK MANDIRI and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANK MANDIRI 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.| BANK MANDIRI vs. KRISPY KREME DL 01 | BANK MANDIRI vs. Goosehead Insurance | BANK MANDIRI vs. Liberty Broadband | BANK MANDIRI vs. Verizon Communications |
| Citigroup vs. The Hanover Insurance | Citigroup vs. Safety Insurance Group | Citigroup vs. Uber Technologies | Citigroup vs. NetSol Technologies |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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