Correlation Between Citigroup and Raisio Oyj

Can any of the company-specific risk be diversified away by investing in both Citigroup and Raisio Oyj 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 Raisio Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Raisio Oyj Vaihto osake, you can compare the effects of market volatilities on Citigroup and Raisio Oyj 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 Raisio Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Raisio Oyj.

Diversification Opportunities for Citigroup and Raisio Oyj

-0.64

Correlation Coefficient

Citigroup  Raisio Oyj

Excellent diversification

The 3 months correlation between Citigroup and Raisio is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Raisio Oyj Vaihto osake in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raisio Oyj Vaihto 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 Raisio Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raisio Oyj Vaihto has no effect on the direction of Citigroup i.e., Citigroup and Raisio Oyj go up and down completely randomly.

Pair Corralation between Citigroup and Raisio Oyj

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.62 times less return on investment than Raisio Oyj. In addition to that, Citigroup is 1.38 times more volatile than Raisio Oyj Vaihto osake. It trades about 0.04 of its total potential returns per unit of risk. Raisio Oyj Vaihto osake is currently generating about 0.09 per unit of volatility. If you would invest  191.00  in Raisio Oyj Vaihto osake on October 8, 2024 and sell it today you would earn a total of  30.00  from holding Raisio Oyj Vaihto osake or generate 15.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.4%
Values	Daily Returns

Citigroup  vs.  Raisio Oyj Vaihto osake

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Raisio Oyj Vaihto

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Raisio Oyj Vaihto osake are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical indicators, Raisio Oyj is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Citigroup and Raisio Oyj

The main advantage of trading using opposite Citigroup and Raisio Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Raisio Oyj 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 Raisio Oyj will offset losses from the drop in Raisio Oyj's long position.

The idea behind Citigroup and Raisio Oyj Vaihto osake 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.