Correlation Between Citigroup and NISOURCE
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By analyzing existing cross correlation between Citigroup and NISOURCE FIN P, you can compare the effects of market volatilities on Citigroup and NISOURCE 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 NISOURCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and NISOURCE.
Diversification Opportunities for Citigroup and NISOURCE
Very good diversification
The 3 months correlation between Citigroup and NISOURCE is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and NISOURCE FIN P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NISOURCE FIN P 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 NISOURCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NISOURCE FIN P has no effect on the direction of Citigroup i.e., Citigroup and NISOURCE go up and down completely randomly.
Pair Corralation between Citigroup and NISOURCE
Taking into account the 90-day investment horizon Citigroup is expected to generate 17.65 times less return on investment than NISOURCE. But when comparing it to its historical volatility, Citigroup is 28.91 times less risky than NISOURCE. It trades about 0.07 of its potential returns per unit of risk. NISOURCE FIN P is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8,488 in NISOURCE FIN P on September 23, 2024 and sell it today you would earn a total of 135.00 from holding NISOURCE FIN P or generate 1.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 91.15% |
Values | Daily Returns |
Citigroup vs. NISOURCE FIN P
Performance |
Timeline |
Citigroup |
NISOURCE FIN P |
Citigroup and NISOURCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and NISOURCE
The main advantage of trading using opposite Citigroup and NISOURCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, NISOURCE 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 NISOURCE will offset losses from the drop in NISOURCE's long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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