Correlation Between Citigroup and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Citigroup and Amg Gwk 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 Amg Gwk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Amg Gwk E, you can compare the effects of market volatilities on Citigroup and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Amg Gwk.
Diversification Opportunities for Citigroup and Amg Gwk
Very good diversification
The 3 months correlation between Citigroup and Amg is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Amg Gwk E in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk E 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk E has no effect on the direction of Citigroup i.e., Citigroup and Amg Gwk go up and down completely randomly.
Pair Corralation between Citigroup and Amg Gwk
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.19 times more return on investment than Amg Gwk. However, Citigroup is 5.19 times more volatile than Amg Gwk E. It trades about 0.14 of its potential returns per unit of risk. Amg Gwk E is currently generating about -0.07 per unit of risk. If you would invest 6,255 in Citigroup on September 23, 2024 and sell it today you would earn a total of 664.00 from holding Citigroup or generate 10.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Amg Gwk E
Performance |
Timeline |
Citigroup |
Amg Gwk E |
Citigroup and Amg Gwk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Amg Gwk
The main advantage of trading using opposite Citigroup and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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