Correlation Between Western Acquisition and CITIGROUP
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By analyzing existing cross correlation between Western Acquisition Ventures and CITIGROUP INC 6675, you can compare the effects of market volatilities on Western Acquisition 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 Western Acquisition with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Acquisition and CITIGROUP.
Diversification Opportunities for Western Acquisition and CITIGROUP
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Western and CITIGROUP is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Western Acquisition Ventures and CITIGROUP INC 6675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6675 and Western Acquisition 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 Western Acquisition Ventures 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 6675 has no effect on the direction of Western Acquisition i.e., Western Acquisition and CITIGROUP go up and down completely randomly.
Pair Corralation between Western Acquisition and CITIGROUP
Given the investment horizon of 90 days Western Acquisition Ventures is expected to under-perform the CITIGROUP. In addition to that, Western Acquisition is 1.12 times more volatile than CITIGROUP INC 6675. It trades about -0.12 of its total potential returns per unit of risk. CITIGROUP INC 6675 is currently generating about -0.12 per unit of volatility. If you would invest 11,350 in CITIGROUP INC 6675 on September 4, 2024 and sell it today you would lose (301.00) from holding CITIGROUP INC 6675 or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Western Acquisition Ventures vs. CITIGROUP INC 6675
Performance |
| Timeline |
| Western Acquisition |
| CITIGROUP INC 6675 |
Western Acquisition and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Acquisition and CITIGROUP
The main advantage of trading using opposite Western Acquisition and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Acquisition 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.The idea behind Western Acquisition Ventures and CITIGROUP INC 6675 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CITIGROUP vs. Omni Health | CITIGROUP vs. CECO Environmental Corp | CITIGROUP vs. Artisan Partners Asset | CITIGROUP vs. Western Acquisition Ventures |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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