Correlation Between Citigroup and DAX Midcap
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By analyzing existing cross correlation between Citigroup and DAX Midcap, you can compare the effects of market volatilities on Citigroup and DAX Midcap 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 DAX Midcap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DAX Midcap.
Diversification Opportunities for Citigroup and DAX Midcap
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and DAX is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DAX Midcap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Midcap 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 DAX Midcap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Midcap has no effect on the direction of Citigroup i.e., Citigroup and DAX Midcap go up and down completely randomly.
Pair Corralation between Citigroup and DAX Midcap
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.24 times more return on investment than DAX Midcap. However, Citigroup is 2.24 times more volatile than DAX Midcap. It trades about 0.17 of its potential returns per unit of risk. DAX Midcap is currently generating about 0.14 per unit of risk. If you would invest 5,902 in Citigroup on September 8, 2024 and sell it today you would earn a total of 1,313 from holding Citigroup or generate 22.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.48% |
Values | Daily Returns |
Citigroup vs. DAX Midcap
Performance |
Timeline |
Citigroup and DAX Midcap Volatility Contrast
Predicted Return Density |
Returns |
Citigroup
Pair trading matchups for Citigroup
DAX Midcap
Pair trading matchups for DAX Midcap
Pair Trading with Citigroup and DAX Midcap
The main advantage of trading using opposite Citigroup and DAX Midcap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DAX Midcap 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 DAX Midcap will offset losses from the drop in DAX Midcap's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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