Correlation Between Citigroup and Aeglea Bio
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aeglea Bio 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 Aeglea Bio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aeglea Bio Therapeutics, you can compare the effects of market volatilities on Citigroup and Aeglea Bio 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 Aeglea Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aeglea Bio.
Diversification Opportunities for Citigroup and Aeglea Bio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Aeglea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aeglea Bio Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeglea Bio Therapeutics 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 Aeglea Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeglea Bio Therapeutics has no effect on the direction of Citigroup i.e., Citigroup and Aeglea Bio go up and down completely randomly.
Pair Corralation between Citigroup and Aeglea Bio
If you would invest 5,579 in Citigroup on December 2, 2024 and sell it today you would earn a total of 2,416 from holding Citigroup or generate 43.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Aeglea Bio Therapeutics
Performance |
Timeline |
Citigroup |
Aeglea Bio Therapeutics |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Aeglea Bio Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Aeglea Bio
The main advantage of trading using opposite Citigroup and Aeglea Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aeglea Bio 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 Aeglea Bio will offset losses from the drop in Aeglea Bio's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Aeglea Bio vs. Edgewise Therapeutics | Aeglea Bio vs. Ikena Oncology | Aeglea Bio vs. Design Therapeutics | Aeglea Bio vs. Xilio Development |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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