Correlation Between Citigroup and Sixt SE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Sixt SE, you can compare the effects of market volatilities on Citigroup and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sixt SE.
Diversification Opportunities for Citigroup and Sixt SE
Very weak diversification
The 3 months correlation between Citigroup and Sixt is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Citigroup i.e., Citigroup and Sixt SE go up and down completely randomly.
Pair Corralation between Citigroup and Sixt SE
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Sixt SE. However, Citigroup is 1.2 times less risky than Sixt SE. It trades about 0.07 of its potential returns per unit of risk. Sixt SE is currently generating about 0.0 per unit of risk. If you would invest 4,219 in Citigroup on September 24, 2024 and sell it today you would earn a total of 2,700 from holding Citigroup or generate 64.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.22% |
Values | Daily Returns |
Citigroup vs. Sixt SE
Performance |
Timeline |
Citigroup |
Sixt SE |
Citigroup and Sixt SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Sixt SE
The main advantage of trading using opposite Citigroup and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.The idea behind Citigroup and Sixt SE 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.Sixt SE vs. Ashtead Group plc | Sixt SE vs. WillScot Mobile Mini | Sixt SE vs. Avis Budget Group | Sixt SE vs. Sixt SE |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |