Correlation Between Citigroup and 49327M3F9
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By analyzing existing cross correlation between Citigroup and KEY 585 15 NOV 27, you can compare the effects of market volatilities on Citigroup and 49327M3F9 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 49327M3F9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 49327M3F9.
Diversification Opportunities for Citigroup and 49327M3F9
Very good diversification
The 3 months correlation between Citigroup and 49327M3F9 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and KEY 585 15 NOV 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY 585 15 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 49327M3F9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY 585 15 has no effect on the direction of Citigroup i.e., Citigroup and 49327M3F9 go up and down completely randomly.
Pair Corralation between Citigroup and 49327M3F9
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.33 times more return on investment than 49327M3F9. However, Citigroup is 4.33 times more volatile than KEY 585 15 NOV 27. It trades about 0.13 of its potential returns per unit of risk. KEY 585 15 NOV 27 is currently generating about -0.19 per unit of risk. If you would invest 5,985 in Citigroup on September 25, 2024 and sell it today you would earn a total of 934.00 from holding Citigroup or generate 15.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.48% |
Values | Daily Returns |
Citigroup vs. KEY 585 15 NOV 27
Performance |
Timeline |
Citigroup |
KEY 585 15 |
Citigroup and 49327M3F9 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and 49327M3F9
The main advantage of trading using opposite Citigroup and 49327M3F9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 49327M3F9 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 49327M3F9 will offset losses from the drop in 49327M3F9's long position.The idea behind Citigroup and KEY 585 15 NOV 27 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.49327M3F9 vs. Tesla Inc | 49327M3F9 vs. NL Industries | 49327M3F9 vs. Eastman Chemical | 49327M3F9 vs. Lucid Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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