Correlation Between 00108WAF7 and CITIGROUP
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By analyzing existing cross correlation between AEP TEX INC and CITIGROUP INC, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and CITIGROUP.
Diversification Opportunities for 00108WAF7 and CITIGROUP
Good diversification
The 3 months correlation between 00108WAF7 and CITIGROUP is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and 00108WAF7 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 AEP TEX 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 has no effect on the direction of 00108WAF7 i.e., 00108WAF7 and CITIGROUP go up and down completely randomly.
Pair Corralation between 00108WAF7 and CITIGROUP
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 289.45 times more return on investment than CITIGROUP. However, 00108WAF7 is 289.45 times more volatile than CITIGROUP INC. It trades about 0.12 of its potential returns per unit of risk. CITIGROUP INC is currently generating about 0.03 per unit of risk. If you would invest 7,549 in AEP TEX INC on November 30, 2024 and sell it today you would lose (158.00) from holding AEP TEX INC or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.59% |
| Values | Daily Returns |
AEP TEX INC vs. CITIGROUP INC
Performance |
| Timeline |
| AEP TEX INC |
| CITIGROUP INC |
00108WAF7 and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and CITIGROUP
The main advantage of trading using opposite 00108WAF7 and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. Guangzhou Automobile Group | 00108WAF7 vs. Zhihu Inc ADR | 00108WAF7 vs. Weibo Corp | 00108WAF7 vs. Copperbank Resources Corp |
| CITIGROUP vs. Primo Brands | CITIGROUP vs. Jeld Wen Holding | CITIGROUP vs. National Beverage Corp | CITIGROUP vs. Brandywine Realty Trust |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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