Correlation Between Citigroup and Amneal Pharmaceuticals,

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

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

Diversification Opportunities for Citigroup and Amneal Pharmaceuticals,

-0.12

Correlation Coefficient

Citigroup  Amneal Pharmaceuticals,

Good diversification

The 3 months correlation between Citigroup and Amneal is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Amneal Pharmaceuticals, Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amneal Pharmaceuticals, 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 Amneal Pharmaceuticals,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amneal Pharmaceuticals, has no effect on the direction of Citigroup i.e., Citigroup and Amneal Pharmaceuticals, go up and down completely randomly.

Pair Corralation between Citigroup and Amneal Pharmaceuticals,

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.77 times less return on investment than Amneal Pharmaceuticals,. But when comparing it to its historical volatility, Citigroup is 1.02 times less risky than Amneal Pharmaceuticals,. It trades about 0.01 of its potential returns per unit of risk. Amneal Pharmaceuticals, Class is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  783.00  in Amneal Pharmaceuticals, Class on December 29, 2024 and sell it today you would earn a total of  45.00  from holding Amneal Pharmaceuticals, Class or generate 5.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Amneal Pharmaceuticals, Class

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Amneal Pharmaceuticals,

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Amneal Pharmaceuticals, Class are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Amneal Pharmaceuticals, may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Citigroup and Amneal Pharmaceuticals,

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

The idea behind Citigroup and Amneal Pharmaceuticals, Class 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.