Correlation Between Citigroup and Oppnhmr Rochester
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oppnhmr Rochester 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 Oppnhmr Rochester into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oppnhmr Rochester Arizona, you can compare the effects of market volatilities on Citigroup and Oppnhmr Rochester 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 Oppnhmr Rochester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oppnhmr Rochester.
Diversification Opportunities for Citigroup and Oppnhmr Rochester
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Oppnhmr is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oppnhmr Rochester Arizona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppnhmr Rochester Arizona 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 Oppnhmr Rochester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppnhmr Rochester Arizona has no effect on the direction of Citigroup i.e., Citigroup and Oppnhmr Rochester go up and down completely randomly.
Pair Corralation between Citigroup and Oppnhmr Rochester
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Oppnhmr Rochester. In addition to that, Citigroup is 4.86 times more volatile than Oppnhmr Rochester Arizona. It trades about -0.08 of its total potential returns per unit of risk. Oppnhmr Rochester Arizona is currently generating about -0.02 per unit of volatility. If you would invest 1,210 in Oppnhmr Rochester Arizona on December 3, 2024 and sell it today you would lose (2.00) from holding Oppnhmr Rochester Arizona or give up 0.17% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Citigroup vs. Oppnhmr Rochester Arizona
Performance |
Timeline |
Citigroup |
Oppnhmr Rochester Arizona |
Citigroup and Oppnhmr Rochester Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Oppnhmr Rochester
The main advantage of trading using opposite Citigroup and Oppnhmr Rochester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oppnhmr Rochester 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 Oppnhmr Rochester will offset losses from the drop in Oppnhmr Rochester'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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