Correlation Between Citigroup and Eva Live

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

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

Diversification Opportunities for Citigroup and Eva Live

0.06

Correlation Coefficient

Citigroup  Eva Live

Significant diversification

The 3 months correlation between Citigroup and Eva is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Eva Live in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eva Live 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 Eva Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eva Live has no effect on the direction of Citigroup i.e., Citigroup and Eva Live go up and down completely randomly.

Pair Corralation between Citigroup and Eva Live

Taking into account the 90-day investment horizon Citigroup is expected to generate 8.23 times less return on investment than Eva Live. But when comparing it to its historical volatility, Citigroup is 9.34 times less risky than Eva Live. It trades about 0.07 of its potential returns per unit of risk. Eva Live is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  201.00  in Eva Live on September 27, 2024 and sell it today you would lose (21.00) from holding Eva Live or give up 10.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Citigroup  vs.  Eva Live

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Eva Live

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eva Live are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Eva Live demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Eva Live

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

The idea behind Citigroup and Eva Live 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.