Correlation Between Citigroup and Sino American
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sino American 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 Sino American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sino American Oil, you can compare the effects of market volatilities on Citigroup and Sino American 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 Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sino American.
Diversification Opportunities for Citigroup and Sino American
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Sino is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sino American Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Oil 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 Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Oil has no effect on the direction of Citigroup i.e., Citigroup and Sino American go up and down completely randomly.
Pair Corralation between Citigroup and Sino American
If you would invest 7,101 in Citigroup on December 4, 2024 and sell it today you would earn a total of 616.00 from holding Citigroup or generate 8.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
Citigroup vs. Sino American Oil
Performance |
Timeline |
Citigroup |
Sino American Oil |
Citigroup and Sino American Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Sino American
The main advantage of trading using opposite Citigroup and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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