Correlation Between Citigroup and Betmakers Technology

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

Diversification Opportunities for Citigroup and Betmakers Technology

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Citigroup and Betmakers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Betmakers Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betmakers Technology 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 Betmakers Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betmakers Technology has no effect on the direction of Citigroup i.e., Citigroup and Betmakers Technology go up and down completely randomly.

Pair Corralation between Citigroup and Betmakers Technology

If you would invest  5,744  in Citigroup on September 10, 2024 and sell it today you would earn a total of  1,471  from holding Citigroup or generate 25.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Citigroup  vs.  Betmakers Technology Group

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 15 (%) 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.
Betmakers Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Betmakers Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Betmakers Technology is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Citigroup and Betmakers Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Citigroup and Betmakers Technology

The main advantage of trading using opposite Citigroup and Betmakers Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Betmakers Technology 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 Betmakers Technology will offset losses from the drop in Betmakers Technology's long position.
The idea behind Citigroup and Betmakers Technology Group 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.
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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