Correlation Between Citigroup and Home Point
Can any of the company-specific risk be diversified away by investing in both Citigroup and Home Point 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 Home Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Home Point Capital, you can compare the effects of market volatilities on Citigroup and Home Point 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 Home Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Home Point.
Diversification Opportunities for Citigroup and Home Point
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Home Point Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Point Capital 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 Home Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Point Capital has no effect on the direction of Citigroup i.e., Citigroup and Home Point go up and down completely randomly.
Pair Corralation between Citigroup and Home Point
If you would invest 6,991 in Citigroup on December 28, 2024 and sell it today you would earn a total of 194.00 from holding Citigroup or generate 2.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Home Point Capital
Performance |
Timeline |
Citigroup |
Home Point Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Home Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Home Point
The main advantage of trading using opposite Citigroup and Home Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Home Point 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 Home Point will offset losses from the drop in Home Point'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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