Correlation Between Citigroup and Herzfeld Caribbean
Can any of the company-specific risk be diversified away by investing in both Citigroup and Herzfeld Caribbean 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 Herzfeld Caribbean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Herzfeld Caribbean Basin, you can compare the effects of market volatilities on Citigroup and Herzfeld Caribbean 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 Herzfeld Caribbean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Herzfeld Caribbean.
Diversification Opportunities for Citigroup and Herzfeld Caribbean
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Herzfeld is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Herzfeld Caribbean Basin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herzfeld Caribbean Basin 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 Herzfeld Caribbean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herzfeld Caribbean Basin has no effect on the direction of Citigroup i.e., Citigroup and Herzfeld Caribbean go up and down completely randomly.
Pair Corralation between Citigroup and Herzfeld Caribbean
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.42 times less return on investment than Herzfeld Caribbean. In addition to that, Citigroup is 1.35 times more volatile than Herzfeld Caribbean Basin. It trades about 0.03 of its total potential returns per unit of risk. Herzfeld Caribbean Basin is currently generating about 0.15 per unit of volatility. If you would invest 234.00 in Herzfeld Caribbean Basin on December 28, 2024 and sell it today you would earn a total of 32.00 from holding Herzfeld Caribbean Basin or generate 13.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Herzfeld Caribbean Basin
Performance |
Timeline |
Citigroup |
Herzfeld Caribbean Basin |
Citigroup and Herzfeld Caribbean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Herzfeld Caribbean
The main advantage of trading using opposite Citigroup and Herzfeld Caribbean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Herzfeld Caribbean 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 Herzfeld Caribbean will offset losses from the drop in Herzfeld Caribbean's long position.Citigroup vs. PJT Partners | Citigroup vs. National Bank Holdings | Citigroup vs. FB Financial Corp | Citigroup vs. Northrim BanCorp |
Herzfeld Caribbean vs. Brookfield Business Corp | Herzfeld Caribbean vs. Elysee Development Corp | Herzfeld Caribbean vs. DWS Municipal Income | Herzfeld Caribbean vs. Blackrock Munivest |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |