Correlation Between Citigroup and Tellurian 825

Can any of the company-specific risk be diversified away by investing in both Citigroup and Tellurian 825 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 Tellurian 825 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Tellurian 825 Percent, you can compare the effects of market volatilities on Citigroup and Tellurian 825 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 Tellurian 825. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tellurian 825.

Diversification Opportunities for Citigroup and Tellurian 825

0.9

Correlation Coefficient

Citigroup  Tellurian 825

Almost no diversification

The 3 months correlation between Citigroup and Tellurian is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tellurian 825 Percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellurian 825 Percent 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 Tellurian 825. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellurian 825 Percent has no effect on the direction of Citigroup i.e., Citigroup and Tellurian 825 go up and down completely randomly.

Pair Corralation between Citigroup and Tellurian 825

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.39 times less return on investment than Tellurian 825. But when comparing it to its historical volatility, Citigroup is 2.5 times less risky than Tellurian 825. It trades about 0.09 of its potential returns per unit of risk. Tellurian 825 Percent is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,595  in Tellurian 825 Percent on September 15, 2024 and sell it today you would earn a total of  977.00  from holding Tellurian 825 Percent or generate 61.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	80.16%
Values	Daily Returns

Citigroup  vs.  Tellurian 825 Percent

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.

Tellurian 825 Percent

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days Tellurian 825 Percent has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly conflicting essential indicators, Tellurian 825 showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Tellurian 825

The main advantage of trading using opposite Citigroup and Tellurian 825 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tellurian 825 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 Tellurian 825 will offset losses from the drop in Tellurian 825's long position.

The idea behind Citigroup and Tellurian 825 Percent 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.