Correlation Between Citigroup and Burzynski Research
Can any of the company-specific risk be diversified away by investing in both Citigroup and Burzynski Research 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 Burzynski Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Burzynski Research, you can compare the effects of market volatilities on Citigroup and Burzynski Research 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 Burzynski Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Burzynski Research.
Diversification Opportunities for Citigroup and Burzynski Research
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Burzynski is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Burzynski Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burzynski Research 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 Burzynski Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burzynski Research has no effect on the direction of Citigroup i.e., Citigroup and Burzynski Research go up and down completely randomly.
Pair Corralation between Citigroup and Burzynski Research
Taking into account the 90-day investment horizon Citigroup is expected to generate 18.45 times less return on investment than Burzynski Research. But when comparing it to its historical volatility, Citigroup is 8.55 times less risky than Burzynski Research. It trades about 0.01 of its potential returns per unit of risk. Burzynski Research is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Burzynski Research on December 29, 2024 and sell it today you would lose (2.00) from holding Burzynski Research or give up 40.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Citigroup vs. Burzynski Research
Performance |
Timeline |
Citigroup |
Burzynski Research |
Citigroup and Burzynski Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Burzynski Research
The main advantage of trading using opposite Citigroup and Burzynski Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Burzynski Research 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 Burzynski Research will offset losses from the drop in Burzynski Research'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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