Correlation Between Citigroup and GBT Technologies
Can any of the company-specific risk be diversified away by investing in both Citigroup and GBT Technologies 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 GBT Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GBT Technologies, you can compare the effects of market volatilities on Citigroup and GBT Technologies 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 GBT Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GBT Technologies.
Diversification Opportunities for Citigroup and GBT Technologies
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and GBT is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GBT Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBT Technologies 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 GBT Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBT Technologies has no effect on the direction of Citigroup i.e., Citigroup and GBT Technologies go up and down completely randomly.
Pair Corralation between Citigroup and GBT Technologies
If you would invest 6,977 in Citigroup on October 22, 2024 and sell it today you would earn a total of 1,022 from holding Citigroup or generate 14.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 94.74% |
Values | Daily Returns |
Citigroup vs. GBT Technologies
Performance |
Timeline |
Citigroup |
GBT Technologies |
Citigroup and GBT Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and GBT Technologies
The main advantage of trading using opposite Citigroup and GBT Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GBT Technologies 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 GBT Technologies will offset losses from the drop in GBT Technologies' long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
GBT Technologies vs. SEATech Ventures Corp | GBT Technologies vs. Alternet Systems | GBT Technologies vs. Crypto Co | GBT Technologies vs. Xalles 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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