Correlation Between CITIGROUP and CenterPoint Energy
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By analyzing existing cross correlation between CITIGROUP INC and CenterPoint Energy, you can compare the effects of market volatilities on CITIGROUP and CenterPoint Energy 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 CenterPoint Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIGROUP and CenterPoint Energy.
Diversification Opportunities for CITIGROUP and CenterPoint Energy
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIGROUP and CenterPoint is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding CITIGROUP INC and CenterPoint Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CenterPoint Energy 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 are associated (or correlated) with CenterPoint Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CenterPoint Energy has no effect on the direction of CITIGROUP i.e., CITIGROUP and CenterPoint Energy go up and down completely randomly.
Pair Corralation between CITIGROUP and CenterPoint Energy
Assuming the 90 days trading horizon CITIGROUP INC is expected to under-perform the CenterPoint Energy. But the bond apears to be less risky and, when comparing its historical volatility, CITIGROUP INC is 1.82 times less risky than CenterPoint Energy. The bond trades about -0.23 of its potential returns per unit of risk. The CenterPoint Energy is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,955 in CenterPoint Energy on August 29, 2024 and sell it today you would earn a total of 298.00 from holding CenterPoint Energy or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIGROUP INC vs. CenterPoint Energy
Performance |
| Timeline |
| CITIGROUP INC |
| CenterPoint Energy |
CITIGROUP and CenterPoint Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIGROUP and CenterPoint Energy
The main advantage of trading using opposite CITIGROUP and CenterPoint Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIGROUP position performs unexpectedly, CenterPoint Energy 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 CenterPoint Energy will offset losses from the drop in CenterPoint Energy's long position.| CITIGROUP vs. Cheniere Energy Partners | CITIGROUP vs. Dalata Hotel Group | CITIGROUP vs. Boyd Gaming | CITIGROUP vs. CenterPoint Energy |
| CenterPoint Energy vs. Entergy | CenterPoint Energy vs. Alliant Energy Corp | CenterPoint Energy vs. Pinnacle West Capital | CenterPoint Energy vs. MGE Energy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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