Correlation Between CITIGROUP and NioCorp Developments
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By analyzing existing cross correlation between CITIGROUP INC 6875 and NioCorp Developments Ltd, you can compare the effects of market volatilities on CITIGROUP and NioCorp Developments 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 CITIGROUP with a short position of NioCorp Developments. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and NioCorp Developments.
Diversification Opportunities for CITIGROUP and NioCorp Developments
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIGROUP and NioCorp is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP INC 6875 and NioCorp Developments Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NioCorp Developments and CITIGROUP 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 CITIGROUP INC 6875 are associated (or correlated) with NioCorp Developments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NioCorp Developments has no effect on the direction of CITIGROUP i.e., CITIGROUP and NioCorp Developments go up and down completely randomly.
Pair Corralation between CITIGROUP and NioCorp Developments
Assuming the 90 days trading horizon CITIGROUP INC 6875 is expected to generate 0.41 times more return on investment than NioCorp Developments. However, CITIGROUP INC 6875 is 2.43 times less risky than NioCorp Developments. It trades about 0.02 of its potential returns per unit of risk. NioCorp Developments Ltd is currently generating about -0.06 per unit of risk. If you would invest 11,328 in CITIGROUP INC 6875 on September 3, 2024 and sell it today you would earn a total of 317.00 from holding CITIGROUP INC 6875 or generate 2.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 66.44% |
| Values | Daily Returns |
CITIGROUP INC 6875 vs. NioCorp Developments Ltd
Performance |
| Timeline |
| CITIGROUP INC 6875 |
| NioCorp Developments |
CITIGROUP and NioCorp Developments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP and NioCorp Developments
The main advantage of trading using opposite CITIGROUP and NioCorp Developments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP position performs unexpectedly, NioCorp Developments 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 NioCorp Developments will offset losses from the drop in NioCorp Developments' long position.| CITIGROUP vs. Montauk Renewables | CITIGROUP vs. Guangdong Investment Limited | CITIGROUP vs. Compania Cervecerias Unidas | CITIGROUP vs. Black Hills |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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