Correlation Between Citigroup and Oppenheimer Intl
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oppenheimer Intl 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 Oppenheimer Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oppenheimer Intl Small, you can compare the effects of market volatilities on Citigroup and Oppenheimer Intl 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 Oppenheimer Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oppenheimer Intl.
Diversification Opportunities for Citigroup and Oppenheimer Intl
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Oppenheimer is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oppenheimer Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Intl Small 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 Oppenheimer Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Intl Small has no effect on the direction of Citigroup i.e., Citigroup and Oppenheimer Intl go up and down completely randomly.
Pair Corralation between Citigroup and Oppenheimer Intl
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.16 times more return on investment than Oppenheimer Intl. However, Citigroup is 1.16 times more volatile than Oppenheimer Intl Small. It trades about 0.13 of its potential returns per unit of risk. Oppenheimer Intl Small is currently generating about -0.1 per unit of risk. If you would invest 7,090 in Citigroup on December 1, 2024 and sell it today you would earn a total of 905.00 from holding Citigroup or generate 12.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Oppenheimer Intl Small
Performance |
Timeline |
Citigroup |
Oppenheimer Intl Small |
Citigroup and Oppenheimer Intl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Oppenheimer Intl
The main advantage of trading using opposite Citigroup and Oppenheimer Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oppenheimer Intl 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 Oppenheimer Intl will offset losses from the drop in Oppenheimer Intl'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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