Correlation Between Citigroup and Tiga Pilar

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

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

Diversification Opportunities for Citigroup and Tiga Pilar

0.0

Correlation Coefficient

Citigroup  Tiga Pilar

Pay attention - limited upside

The 3 months correlation between Citigroup and Tiga is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiga Pilar Sejahtera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiga Pilar Sejahtera 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 Tiga Pilar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiga Pilar Sejahtera has no effect on the direction of Citigroup i.e., Citigroup and Tiga Pilar go up and down completely randomly.

Pair Corralation between Citigroup and Tiga Pilar

If you would invest (100.00) in Tiga Pilar Sejahtera on September 20, 2024 and sell it today you would earn a total of  100.00  from holding Tiga Pilar Sejahtera or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  Tiga Pilar Sejahtera

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) 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 January 2025.

Tiga Pilar Sejahtera

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Citigroup and Tiga Pilar

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

The idea behind Citigroup and Tiga Pilar Sejahtera 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.