Correlation Between Citigroup and Oasis Hotel
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oasis Hotel 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 Oasis Hotel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oasis Hotel Resort, you can compare the effects of market volatilities on Citigroup and Oasis Hotel 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 Oasis Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oasis Hotel.
Diversification Opportunities for Citigroup and Oasis Hotel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Oasis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oasis Hotel Resort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oasis Hotel Resort 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 Oasis Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oasis Hotel Resort has no effect on the direction of Citigroup i.e., Citigroup and Oasis Hotel go up and down completely randomly.
Pair Corralation between Citigroup and Oasis Hotel
If you would invest 5,960 in Citigroup on December 5, 2024 and sell it today you would earn a total of 1,233 from holding Citigroup or generate 20.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.56% |
Values | Daily Returns |
Citigroup vs. Oasis Hotel Resort
Performance |
Timeline |
Citigroup |
Oasis Hotel Resort |
Citigroup and Oasis Hotel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Oasis Hotel
The main advantage of trading using opposite Citigroup and Oasis Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oasis Hotel 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 Oasis Hotel will offset losses from the drop in Oasis Hotel's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Oasis Hotel vs. Corsair Gaming | Oasis Hotel vs. Stepan Company | Oasis Hotel vs. AerSale Corp | Oasis Hotel vs. Olympic Steel |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |