Correlation Between ESGL Holdings and CITIGROUP
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By analyzing existing cross correlation between ESGL Holdings Limited and CITIGROUP FDG INC, you can compare the effects of market volatilities on ESGL Holdings and CITIGROUP 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 ESGL Holdings with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGL Holdings and CITIGROUP.
Diversification Opportunities for ESGL Holdings and CITIGROUP
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ESGL and CITIGROUP is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ESGL Holdings Limited and CITIGROUP FDG INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP FDG INC and ESGL Holdings 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 ESGL Holdings Limited are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP FDG INC has no effect on the direction of ESGL Holdings i.e., ESGL Holdings and CITIGROUP go up and down completely randomly.
Pair Corralation between ESGL Holdings and CITIGROUP
Assuming the 90 days horizon ESGL Holdings Limited is expected to generate 143.91 times more return on investment than CITIGROUP. However, ESGL Holdings is 143.91 times more volatile than CITIGROUP FDG INC. It trades about 0.22 of its potential returns per unit of risk. CITIGROUP FDG INC is currently generating about 0.02 per unit of risk. If you would invest 12,788 in ESGL Holdings Limited on September 24, 2024 and sell it today you would lose (12,786) from holding ESGL Holdings Limited or give up 99.99% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 30.07% |
Values | Daily Returns |
ESGL Holdings Limited vs. CITIGROUP FDG INC
Performance |
Timeline |
ESGL Holdings Limited |
CITIGROUP FDG INC |
ESGL Holdings and CITIGROUP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ESGL Holdings and CITIGROUP
The main advantage of trading using opposite ESGL Holdings and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGL Holdings position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.ESGL Holdings vs. Genpact Limited | ESGL Holdings vs. Broadridge Financial Solutions | ESGL Holdings vs. First Advantage Corp | ESGL Holdings vs. Franklin Covey |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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