Correlation Between Golden Matrix and CITIGROUP

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

By analyzing existing cross correlation between Golden Matrix Group and CITIGROUP INC, you can compare the effects of market volatilities on Golden Matrix and CITIGROUP 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 Golden Matrix with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Matrix and CITIGROUP.

Diversification Opportunities for Golden Matrix and CITIGROUP

-0.17

Correlation Coefficient

Golden Matrix  CITIGROUP

Good diversification

The 3 months correlation between Golden and CITIGROUP is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and CITIGROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC and Golden Matrix 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 Golden Matrix Group are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC has no effect on the direction of Golden Matrix i.e., Golden Matrix and CITIGROUP go up and down completely randomly.

Pair Corralation between Golden Matrix and CITIGROUP

Given the investment horizon of 90 days Golden Matrix Group is expected to generate 13.25 times more return on investment than CITIGROUP. However, Golden Matrix is 13.25 times more volatile than CITIGROUP INC. It trades about 0.01 of its potential returns per unit of risk. CITIGROUP INC is currently generating about -0.13 per unit of risk. If you would invest  215.00  in Golden Matrix Group on December 5, 2024 and sell it today you would lose (10.00) from holding Golden Matrix Group or give up 4.65% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.72%
Values	Daily Returns

Golden Matrix Group  vs.  CITIGROUP INC

Golden Matrix Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Matrix Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Golden Matrix is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

CITIGROUP INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days CITIGROUP INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, CITIGROUP is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Golden Matrix and CITIGROUP

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

The idea behind Golden Matrix Group and CITIGROUP INC 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.