Correlation Between Citigroup and Green Impact
Can any of the company-specific risk be diversified away by investing in both Citigroup and Green Impact 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 Green Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Green Impact Partners, you can compare the effects of market volatilities on Citigroup and Green Impact 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 Green Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Green Impact.
Diversification Opportunities for Citigroup and Green Impact
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Green is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Green Impact Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Impact Partners 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 Green Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Impact Partners has no effect on the direction of Citigroup i.e., Citigroup and Green Impact go up and down completely randomly.
Pair Corralation between Citigroup and Green Impact
If you would invest 240.00 in Green Impact Partners on December 5, 2024 and sell it today you would earn a total of 0.00 from holding Green Impact Partners or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Citigroup vs. Green Impact Partners
Performance |
Timeline |
Citigroup |
Green Impact Partners |
Citigroup and Green Impact Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Green Impact
The main advantage of trading using opposite Citigroup and Green Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Green Impact 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 Green Impact will offset losses from the drop in Green Impact's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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