Correlation Between Citigroup and Oxford Technology

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Can any of the company-specific risk be diversified away by investing in both Citigroup and Oxford Technology 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 Oxford Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oxford Technology 2, you can compare the effects of market volatilities on Citigroup and Oxford Technology 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 Oxford Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oxford Technology.

Diversification Opportunities for Citigroup and Oxford Technology

CitigroupOxfordDiversified AwayCitigroupOxfordDiversified Away100%
-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Citigroup and Oxford is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oxford Technology 2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Technology 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 Oxford Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Technology has no effect on the direction of Citigroup i.e., Citigroup and Oxford Technology go up and down completely randomly.

Pair Corralation between Citigroup and Oxford Technology

If you would invest  6,209  in Citigroup on October 15, 2024 and sell it today you would earn a total of  931.00  from holding Citigroup or generate 14.99% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Citigroup  vs.  Oxford Technology 2

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -10-5051015
JavaScript chart by amCharts 3.21.15C OXH
       Timeline  
Citigroup 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan62646668707274
Oxford Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Oxford Technology 2 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Oxford Technology is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan77.05

Citigroup and Oxford Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.69-4.26-2.83-1.40.02381.523.044.566.08 0.050.100.15
JavaScript chart by amCharts 3.21.15C OXH
       Returns  

Pair Trading with Citigroup and Oxford Technology

The main advantage of trading using opposite Citigroup and Oxford Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oxford Technology 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 Oxford Technology will offset losses from the drop in Oxford Technology's long position.
The idea behind Citigroup and Oxford Technology 2 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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