Correlation Between Citigroup and 539830BY4
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By analyzing existing cross correlation between Citigroup and LMT 59 15 NOV 63, you can compare the effects of market volatilities on Citigroup and 539830BY4 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 539830BY4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 539830BY4.
Diversification Opportunities for Citigroup and 539830BY4
Very good diversification
The 3 months correlation between Citigroup and 539830BY4 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and LMT 59 15 NOV 63 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LMT 59 15 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 539830BY4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LMT 59 15 has no effect on the direction of Citigroup i.e., Citigroup and 539830BY4 go up and down completely randomly.
Pair Corralation between Citigroup and 539830BY4
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.52 times more return on investment than 539830BY4. However, Citigroup is 1.52 times more volatile than LMT 59 15 NOV 63. It trades about 0.18 of its potential returns per unit of risk. LMT 59 15 NOV 63 is currently generating about -0.03 per unit of risk. If you would invest 5,788 in Citigroup on September 15, 2024 and sell it today you would earn a total of 1,313 from holding Citigroup or generate 22.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 89.06% |
Values | Daily Returns |
Citigroup vs. LMT 59 15 NOV 63
Performance |
Timeline |
Citigroup |
LMT 59 15 |
Citigroup and 539830BY4 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and 539830BY4
The main advantage of trading using opposite Citigroup and 539830BY4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 539830BY4 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 539830BY4 will offset losses from the drop in 539830BY4'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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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