Correlation Between Citigroup and Airship AI
Can any of the company-specific risk be diversified away by investing in both Citigroup and Airship AI 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 Airship AI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Airship AI Holdings, you can compare the effects of market volatilities on Citigroup and Airship AI 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 Airship AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Airship AI.
Diversification Opportunities for Citigroup and Airship AI
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Airship is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Airship AI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airship AI Holdings 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 Airship AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airship AI Holdings has no effect on the direction of Citigroup i.e., Citigroup and Airship AI go up and down completely randomly.
Pair Corralation between Citigroup and Airship AI
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.18 times more return on investment than Airship AI. However, Citigroup is 5.67 times less risky than Airship AI. It trades about 0.03 of its potential returns per unit of risk. Airship AI Holdings is currently generating about 0.0 per unit of risk. If you would invest 6,991 in Citigroup on December 28, 2024 and sell it today you would earn a total of 194.00 from holding Citigroup or generate 2.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Airship AI Holdings
Performance |
Timeline |
Citigroup |
Airship AI Holdings |
Citigroup and Airship AI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Airship AI
The main advantage of trading using opposite Citigroup and Airship AI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Airship AI 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 Airship AI will offset losses from the drop in Airship AI's long position.Citigroup vs. PJT Partners | Citigroup vs. National Bank Holdings | Citigroup vs. FB Financial Corp | Citigroup vs. Northrim BanCorp |
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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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