Correlation Between Citigroup and Samsung Special
Can any of the company-specific risk be diversified away by investing in both Citigroup and Samsung Special 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 Samsung Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Samsung Special Purpose, you can compare the effects of market volatilities on Citigroup and Samsung Special 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 Samsung Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Samsung Special.
Diversification Opportunities for Citigroup and Samsung Special
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Samsung is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Samsung Special Purpose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Special Purpose 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 Samsung Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Special Purpose has no effect on the direction of Citigroup i.e., Citigroup and Samsung Special go up and down completely randomly.
Pair Corralation between Citigroup and Samsung Special
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.41 times more return on investment than Samsung Special. However, Citigroup is 7.41 times more volatile than Samsung Special Purpose. It trades about 0.13 of its potential returns per unit of risk. Samsung Special Purpose is currently generating about 0.1 per unit of risk. If you would invest 7,090 in Citigroup on December 2, 2024 and sell it today you would earn a total of 905.00 from holding Citigroup or generate 12.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 72.13% |
Values | Daily Returns |
Citigroup vs. Samsung Special Purpose
Performance |
Timeline |
Citigroup |
Samsung Special Purpose |
Risk-Adjusted Performance
OK
Weak | Strong |
Citigroup and Samsung Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Samsung Special
The main advantage of trading using opposite Citigroup and Samsung Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Samsung Special 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 Samsung Special will offset losses from the drop in Samsung Special's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Samsung Special vs. Kukdong Oil Chemicals | Samsung Special vs. Hannong Chemicals | Samsung Special vs. Daol Investment Securities | Samsung Special vs. SV Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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