Correlation Between Citigroup and 04685A3E9

Can any of the company-specific risk be diversified away by investing in both Citigroup and 04685A3E9 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 04685A3E9 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and ATH 2646 04 OCT 31, you can compare the effects of market volatilities on Citigroup and 04685A3E9 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 04685A3E9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 04685A3E9.

Diversification Opportunities for Citigroup and 04685A3E9

0.2

Correlation Coefficient

Citigroup  04685A3E9

Modest diversification

The 3 months correlation between Citigroup and 04685A3E9 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ATH 2646 04 OCT 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATH 2646 04 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 04685A3E9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATH 2646 04 has no effect on the direction of Citigroup i.e., Citigroup and 04685A3E9 go up and down completely randomly.

Pair Corralation between Citigroup and 04685A3E9

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.66 times more return on investment than 04685A3E9. However, Citigroup is 1.51 times less risky than 04685A3E9. It trades about 0.07 of its potential returns per unit of risk. ATH 2646 04 OCT 31 is currently generating about -0.06 per unit of risk. If you would invest  6,013  in Citigroup on September 24, 2024 and sell it today you would earn a total of  906.00  from holding Citigroup or generate 15.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	45.67%
Values	Daily Returns

Citigroup  vs.  ATH 2646 04 OCT 31

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 uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

ATH 2646 04

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 2646 04 OCT 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for ATH 2646 04 OCT 31 investors.

Pair Trading with Citigroup and 04685A3E9

The main advantage of trading using opposite Citigroup and 04685A3E9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 04685A3E9 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 04685A3E9 will offset losses from the drop in 04685A3E9's long position.

The idea behind Citigroup and ATH 2646 04 OCT 31 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.