Correlation Between Citigroup and My Humble

Can any of the company-specific risk be diversified away by investing in both Citigroup and My Humble 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 Citigroup and My Humble into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and My Humble House, you can compare the effects of market volatilities on Citigroup and My Humble 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 My Humble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and My Humble.

Diversification Opportunities for Citigroup and My Humble

-0.87

Correlation Coefficient

Citigroup  My Humble

Pay attention - limited upside

The 3 months correlation between Citigroup and 2739 is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and My Humble House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on My Humble House 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 are associated (or correlated) with My Humble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of My Humble House has no effect on the direction of Citigroup i.e., Citigroup and My Humble go up and down completely randomly.

Pair Corralation between Citigroup and My Humble

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.0 times more return on investment than My Humble. However, Citigroup is 1.0 times less risky than My Humble. It trades about 0.14 of its potential returns per unit of risk. My Humble House is currently generating about -0.15 per unit of risk. If you would invest  6,209  in Citigroup on October 15, 2024 and sell it today you would earn a total of  931.00  from holding Citigroup or generate 14.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Citigroup  vs.  My Humble House

Citigroup

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

My Humble House

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days My Humble House has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Citigroup and My Humble

The main advantage of trading using opposite Citigroup and My Humble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, My Humble 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 My Humble will offset losses from the drop in My Humble's long position.

The idea behind Citigroup and My Humble House 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.