Correlation Between Citigroup and Widodo Makmur

Can any of the company-specific risk be diversified away by investing in both Citigroup and Widodo Makmur 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 Widodo Makmur into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Widodo Makmur Perkasa, you can compare the effects of market volatilities on Citigroup and Widodo Makmur 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 Widodo Makmur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Widodo Makmur.

Diversification Opportunities for Citigroup and Widodo Makmur

0.0

Correlation Coefficient

Citigroup  Widodo Makmur

Pay attention - limited upside

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

Pair Corralation between Citigroup and Widodo Makmur

If you would invest  6,159  in Citigroup on September 20, 2024 and sell it today you would earn a total of  683.00  from holding Citigroup or generate 11.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Citigroup  vs.  Widodo Makmur Perkasa

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Widodo Makmur Perkasa

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Widodo Makmur Perkasa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Widodo Makmur is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Citigroup and Widodo Makmur

The main advantage of trading using opposite Citigroup and Widodo Makmur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Widodo Makmur 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 Widodo Makmur will offset losses from the drop in Widodo Makmur's long position.

The idea behind Citigroup and Widodo Makmur Perkasa 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.