Correlation Between Citigroup and Ips Strategic
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ips Strategic 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 Ips Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ips Strategic Capital, you can compare the effects of market volatilities on Citigroup and Ips Strategic 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 Ips Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ips Strategic.
Diversification Opportunities for Citigroup and Ips Strategic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Ips is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ips Strategic Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ips Strategic Capital 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 Ips Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ips Strategic Capital has no effect on the direction of Citigroup i.e., Citigroup and Ips Strategic go up and down completely randomly.
Pair Corralation between Citigroup and Ips Strategic
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Ips Strategic. In addition to that, Citigroup is 2.05 times more volatile than Ips Strategic Capital. It trades about -0.05 of its total potential returns per unit of risk. Ips Strategic Capital is currently generating about 0.0 per unit of volatility. If you would invest 1,216 in Ips Strategic Capital on September 24, 2024 and sell it today you would lose (1.00) from holding Ips Strategic Capital or give up 0.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.24% |
Values | Daily Returns |
Citigroup vs. Ips Strategic Capital
Performance |
Timeline |
Citigroup |
Ips Strategic Capital |
Citigroup and Ips Strategic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Ips Strategic
The main advantage of trading using opposite Citigroup and Ips Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ips Strategic 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 Ips Strategic will offset losses from the drop in Ips Strategic's long position.The idea behind Citigroup and Ips Strategic Capital 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.Ips Strategic vs. Transamerica Multi Managed Balanced | Ips Strategic vs. Transamerica Capital Growth | Ips Strategic vs. Voya Solution Moderately | Ips Strategic vs. Transamerica Flexible Income |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |