Correlation Between Citigroup and 713448FG8

Can any of the company-specific risk be diversified away by investing in both Citigroup and 713448FG8 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 713448FG8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and PEP 275 21 OCT 51, you can compare the effects of market volatilities on Citigroup and 713448FG8 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 713448FG8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 713448FG8.

Diversification Opportunities for Citigroup and 713448FG8

-0.04

Correlation Coefficient

Citigroup  713448FG8

Good diversification

The 3 months correlation between Citigroup and 713448FG8 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PEP 275 21 OCT 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PEP 275 21 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 713448FG8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PEP 275 21 has no effect on the direction of Citigroup i.e., Citigroup and 713448FG8 go up and down completely randomly.

Pair Corralation between Citigroup and 713448FG8

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.71 times more return on investment than 713448FG8. However, Citigroup is 1.4 times less risky than 713448FG8. It trades about 0.09 of its potential returns per unit of risk. PEP 275 21 OCT 51 is currently generating about 0.02 per unit of risk. If you would invest  6,543  in Citigroup on October 13, 2024 and sell it today you would earn a total of  597.00  from holding Citigroup or generate 9.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	83.61%
Values	Daily Returns

Citigroup  vs.  PEP 275 21 OCT 51

Citigroup

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

PEP 275 21

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in PEP 275 21 OCT 51 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, 713448FG8 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and 713448FG8

The main advantage of trading using opposite Citigroup and 713448FG8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 713448FG8 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 713448FG8 will offset losses from the drop in 713448FG8's long position.

The idea behind Citigroup and PEP 275 21 OCT 51 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.