Correlation Between Citigroup and Trophy Resources
Can any of the company-specific risk be diversified away by investing in both Citigroup and Trophy Resources 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 Trophy Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Trophy Resources, you can compare the effects of market volatilities on Citigroup and Trophy Resources 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 Trophy Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Trophy Resources.
Diversification Opportunities for Citigroup and Trophy Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Trophy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Trophy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trophy Resources 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 Trophy Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trophy Resources has no effect on the direction of Citigroup i.e., Citigroup and Trophy Resources go up and down completely randomly.
Pair Corralation between Citigroup and Trophy Resources
If you would invest 6,991 in Citigroup on December 28, 2024 and sell it today you would earn a total of 194.00 from holding Citigroup or generate 2.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Trophy Resources
Performance |
Timeline |
Citigroup |
Trophy Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Trophy Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Trophy Resources
The main advantage of trading using opposite Citigroup and Trophy Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Trophy Resources 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 Trophy Resources will offset losses from the drop in Trophy Resources' long position.Citigroup vs. PJT Partners | Citigroup vs. National Bank Holdings | Citigroup vs. FB Financial Corp | Citigroup vs. Northrim BanCorp |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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