Correlation Between Citigroup and PACIFIC
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By analyzing existing cross correlation between Citigroup and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Citigroup and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PACIFIC.
Diversification Opportunities for Citigroup and PACIFIC
Modest diversification
The 3 months correlation between Citigroup and PACIFIC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Citigroup i.e., Citigroup and PACIFIC go up and down completely randomly.
Pair Corralation between Citigroup and PACIFIC
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.96 times more return on investment than PACIFIC. However, Citigroup is 8.96 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.1 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about 0.01 per unit of risk. If you would invest 6,203 in Citigroup on September 23, 2024 and sell it today you would earn a total of 716.00 from holding Citigroup or generate 11.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.92% |
Values | Daily Returns |
Citigroup vs. PACIFIC GAS ELECTRIC
Performance |
Timeline |
Citigroup |
PACIFIC GAS ELECTRIC |
Citigroup and PACIFIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and PACIFIC
The main advantage of trading using opposite Citigroup and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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