Correlation Between Citigroup and Shapeways Holdings,

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

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

Diversification Opportunities for Citigroup and Shapeways Holdings,

0.29

Correlation Coefficient

Citigroup  Shapeways Holdings,

Modest diversification

The 3 months correlation between Citigroup and Shapeways is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shapeways Holdings, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shapeways Holdings, 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 Shapeways Holdings,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shapeways Holdings, has no effect on the direction of Citigroup i.e., Citigroup and Shapeways Holdings, go up and down completely randomly.

Pair Corralation between Citigroup and Shapeways Holdings,

Taking into account the 90-day investment horizon Citigroup is expected to generate 128.37 times less return on investment than Shapeways Holdings,. But when comparing it to its historical volatility, Citigroup is 85.48 times less risky than Shapeways Holdings,. It trades about 0.12 of its potential returns per unit of risk. Shapeways Holdings, Common is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Shapeways Holdings, Common on August 31, 2024 and sell it today you would earn a total of  0.02  from holding Shapeways Holdings, Common or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Shapeways Holdings, Common

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) 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.

Shapeways Holdings,

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Shapeways Holdings, Common are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Shapeways Holdings, showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Shapeways Holdings,

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

The idea behind Citigroup and Shapeways Holdings, Common 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..