Correlation Between Teladoc Health and Citigroup
Can any of the company-specific risk be diversified away by investing in both Teladoc Health 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 Teladoc Health and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teladoc Health and Citigroup, you can compare the effects of market volatilities on Teladoc Health 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 Teladoc Health with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teladoc Health and Citigroup.
Diversification Opportunities for Teladoc Health and Citigroup
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teladoc and Citigroup is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Teladoc Health and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Teladoc Health 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 Teladoc Health 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 Teladoc Health i.e., Teladoc Health and Citigroup go up and down completely randomly.
Pair Corralation between Teladoc Health and Citigroup
Assuming the 90 days trading horizon Teladoc Health is expected to under-perform the Citigroup. In addition to that, Teladoc Health is 2.78 times more volatile than Citigroup. It trades about -0.01 of its total potential returns per unit of risk. Citigroup is currently generating about 0.12 per unit of volatility. If you would invest 3,448 in Citigroup on September 19, 2024 and sell it today you would earn a total of 3,809 from holding Citigroup or generate 110.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teladoc Health vs. Citigroup
Performance |
| Timeline |
| Teladoc Health |
| Citigroup |
Teladoc Health and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teladoc Health and Citigroup
The main advantage of trading using opposite Teladoc Health and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teladoc Health 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.| Teladoc Health vs. Unifique Telecomunicaes SA | Teladoc Health vs. Tyson Foods | Teladoc Health vs. Zoom Video Communications | Teladoc Health vs. Nordon Indstrias Metalrgicas |
| Citigroup vs. Bemobi Mobile Tech | Citigroup vs. Teladoc Health | Citigroup vs. Micron Technology | Citigroup vs. Capital One Financial |
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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