Correlation Between Citigroup and Union Textile
Can any of the company-specific risk be diversified away by investing in both Citigroup and Union Textile 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 Union Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Union Textile Industries, you can compare the effects of market volatilities on Citigroup and Union Textile 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 Union Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Union Textile.
Diversification Opportunities for Citigroup and Union Textile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Union is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Union Textile Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Textile Industries 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 Union Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Textile Industries has no effect on the direction of Citigroup i.e., Citigroup and Union Textile go up and down completely randomly.
Pair Corralation between Citigroup and Union Textile
If you would invest 5,937 in Citigroup on September 18, 2024 and sell it today you would earn a total of 1,212 from holding Citigroup or generate 20.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Union Textile Industries
Performance |
Timeline |
Citigroup |
Union Textile Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Union Textile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Union Textile
The main advantage of trading using opposite Citigroup and Union Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Union Textile 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 Union Textile will offset losses from the drop in Union Textile'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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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