Correlation Between Citigroup and Quantum FinTech

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Can any of the company-specific risk be diversified away by investing in both Citigroup and Quantum FinTech 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 Quantum FinTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Quantum FinTech Acquisition, you can compare the effects of market volatilities on Citigroup and Quantum FinTech 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 Quantum FinTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Quantum FinTech.

Diversification Opportunities for Citigroup and Quantum FinTech

0.11
  Correlation Coefficient

Average diversification

The 3 months correlation between Citigroup and Quantum is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Quantum FinTech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quantum FinTech Acqu 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 Quantum FinTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quantum FinTech Acqu has no effect on the direction of Citigroup i.e., Citigroup and Quantum FinTech go up and down completely randomly.

Pair Corralation between Citigroup and Quantum FinTech

If you would invest  5,937  in Citigroup on September 18, 2024 and sell it today you would earn a total of  1,212  from holding Citigroup or generate 20.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy1.59%
ValuesDaily Returns

Citigroup  vs.  Quantum FinTech Acquisition

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
Quantum FinTech Acqu 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Quantum FinTech Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Quantum FinTech is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Citigroup and Quantum FinTech Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and Quantum FinTech

The main advantage of trading using opposite Citigroup and Quantum FinTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Quantum FinTech 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 Quantum FinTech will offset losses from the drop in Quantum FinTech's long position.
The idea behind Citigroup and Quantum FinTech Acquisition 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.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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