Correlation Between Citigroup and Mowi ASA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mowi ASA 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 Mowi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mowi ASA ADR, you can compare the effects of market volatilities on Citigroup and Mowi ASA 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 Mowi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mowi ASA.
Diversification Opportunities for Citigroup and Mowi ASA
Weak diversification
The 3 months correlation between Citigroup and Mowi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mowi ASA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mowi ASA ADR 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 Mowi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mowi ASA ADR has no effect on the direction of Citigroup i.e., Citigroup and Mowi ASA go up and down completely randomly.
Pair Corralation between Citigroup and Mowi ASA
If you would invest 5,683 in Citigroup on September 12, 2024 and sell it today you would earn a total of 1,567 from holding Citigroup or generate 27.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.56% |
Values | Daily Returns |
Citigroup vs. Mowi ASA ADR
Performance |
Timeline |
Citigroup |
Mowi ASA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Mowi ASA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Mowi ASA
The main advantage of trading using opposite Citigroup and Mowi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mowi ASA 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 Mowi ASA will offset losses from the drop in Mowi ASA's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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