Correlation Between Citigroup and Soc Franc

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

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

Diversification Opportunities for Citigroup and Soc Franc

0.7

Correlation Coefficient

Citigroup  Soc Franc

Poor diversification

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

Pair Corralation between Citigroup and Soc Franc

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.66 times less return on investment than Soc Franc. But when comparing it to its historical volatility, Citigroup is 4.58 times less risky than Soc Franc. It trades about 0.22 of its potential returns per unit of risk. Soc Franc Casinos is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  172.00  in Soc Franc Casinos on September 17, 2024 and sell it today you would earn a total of  15.00  from holding Soc Franc Casinos or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Soc Franc Casinos

Citigroup

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 13 (%) 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.

Soc Franc Casinos

Risk-Adjusted Performance

1 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Soc Franc Casinos are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Soc Franc is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Soc Franc

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

The idea behind Citigroup and Soc Franc Casinos 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.