Correlation Between Citigroup and Revolution Medicines,

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

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

Diversification Opportunities for Citigroup and Revolution Medicines,

-0.7

Correlation Coefficient

Citigroup  Revolution Medicines,

Excellent diversification

The 3 months correlation between Citigroup and Revolution is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Revolution Medicines, Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Revolution Medicines, 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 Revolution Medicines,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Revolution Medicines, has no effect on the direction of Citigroup i.e., Citigroup and Revolution Medicines, go up and down completely randomly.

Pair Corralation between Citigroup and Revolution Medicines,

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.08 times more return on investment than Revolution Medicines,. However, Citigroup is 11.96 times less risky than Revolution Medicines,. It trades about 0.13 of its potential returns per unit of risk. Revolution Medicines, Warrant is currently generating about -0.03 per unit of risk. If you would invest  7,090  in Citigroup on December 2, 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	Weak
Accuracy	98.36%
Values	Daily Returns

Citigroup  vs.  Revolution Medicines, Warrant

Citigroup

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) 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.

Revolution Medicines,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Revolution Medicines, Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Citigroup and Revolution Medicines,

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

The idea behind Citigroup and Revolution Medicines, Warrant 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.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.