Correlation Between Citigroup and Veg Of

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

By analyzing existing cross correlation between Citigroup and Veg of Lund, you can compare the effects of market volatilities on Citigroup and Veg Of 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 Veg Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Veg Of.

Diversification Opportunities for Citigroup and Veg Of

-0.4

Correlation Coefficient

Citigroup  Veg Of

Very good diversification

The 3 months correlation between Citigroup and Veg is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Veg of Lund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veg of Lund 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 Veg Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veg of Lund has no effect on the direction of Citigroup i.e., Citigroup and Veg Of go up and down completely randomly.

Pair Corralation between Citigroup and Veg Of

Taking into account the 90-day investment horizon Citigroup is expected to generate 32.07 times less return on investment than Veg Of. But when comparing it to its historical volatility, Citigroup is 4.03 times less risky than Veg Of. It trades about 0.03 of its potential returns per unit of risk. Veg of Lund is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  24.00  in Veg of Lund on December 29, 2024 and sell it today you would earn a total of  47.00  from holding Veg of Lund or generate 195.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Veg of Lund

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Veg of Lund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Veg of Lund are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Veg Of unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Veg Of

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

The idea behind Citigroup and Veg of Lund 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.