Correlation Between Citigroup and GMK Norilskiy
Can any of the company-specific risk be diversified away by investing in both Citigroup and GMK Norilskiy 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 GMK Norilskiy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and GMK Norilskiy Nikel, you can compare the effects of market volatilities on Citigroup and GMK Norilskiy 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 GMK Norilskiy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and GMK Norilskiy.
Diversification Opportunities for Citigroup and GMK Norilskiy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and GMK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and GMK Norilskiy Nikel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMK Norilskiy Nikel 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 GMK Norilskiy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMK Norilskiy Nikel has no effect on the direction of Citigroup i.e., Citigroup and GMK Norilskiy go up and down completely randomly.
Pair Corralation between Citigroup and GMK Norilskiy
If you would invest 7,173 in Citigroup on December 5, 2024 and sell it today you would earn a total of 62.00 from holding Citigroup or generate 0.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. GMK Norilskiy Nikel
Performance |
Timeline |
Citigroup |
GMK Norilskiy Nikel |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and GMK Norilskiy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and GMK Norilskiy
The main advantage of trading using opposite Citigroup and GMK Norilskiy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, GMK Norilskiy 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 GMK Norilskiy will offset losses from the drop in GMK Norilskiy'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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