Correlation Between Citigroup and Deutsche Telekom
Can any of the company-specific risk be diversified away by investing in both Citigroup and Deutsche Telekom 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 Deutsche Telekom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Deutsche Telekom AG, you can compare the effects of market volatilities on Citigroup and Deutsche Telekom 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 Deutsche Telekom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Deutsche Telekom.
Diversification Opportunities for Citigroup and Deutsche Telekom
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Deutsche is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Deutsche Telekom AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Telekom 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 Deutsche Telekom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Telekom has no effect on the direction of Citigroup i.e., Citigroup and Deutsche Telekom go up and down completely randomly.
Pair Corralation between Citigroup and Deutsche Telekom
If you would invest 5,683 in Citigroup on September 12, 2024 and sell it today you would earn a total of 1,567 from holding Citigroup or generate 27.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 1.59% |
Values | Daily Returns |
Citigroup vs. Deutsche Telekom AG
Performance |
Timeline |
Citigroup |
Deutsche Telekom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Deutsche Telekom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Deutsche Telekom
The main advantage of trading using opposite Citigroup and Deutsche Telekom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Deutsche Telekom 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 Deutsche Telekom will offset losses from the drop in Deutsche Telekom's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Deutsche Telekom vs. KDDI Corp PK | Deutsche Telekom vs. Nippon Telegraph Telephone | Deutsche Telekom vs. Softbank Group Corp | Deutsche Telekom vs. KT Corporation |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Stocks Directory Find actively traded stocks across global markets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |