Correlation Between Biotricity and Citigroup
Can any of the company-specific risk be diversified away by investing in both Biotricity and Citigroup 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 Biotricity and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biotricity and Citigroup, you can compare the effects of market volatilities on Biotricity 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 Biotricity with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biotricity and Citigroup.
Diversification Opportunities for Biotricity and Citigroup
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biotricity and Citigroup is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Biotricity and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Biotricity 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 Biotricity 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 has no effect on the direction of Biotricity i.e., Biotricity and Citigroup go up and down completely randomly.
Pair Corralation between Biotricity and Citigroup
Given the investment horizon of 90 days Biotricity is expected to generate 4.8 times more return on investment than Citigroup. However, Biotricity is 4.8 times more volatile than Citigroup. It trades about 0.12 of its potential returns per unit of risk. Citigroup is currently generating about 0.01 per unit of risk. If you would invest 127.00 in Biotricity on January 24, 2024 and sell it today you would earn a total of 19.00 from holding Biotricity or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Biotricity vs. Citigroup
Performance |
| Timeline |
| Biotricity |
| Citigroup |
Biotricity and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biotricity and Citigroup
The main advantage of trading using opposite Biotricity and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biotricity 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.| Biotricity vs. HealthStream | Biotricity vs. National Research Corp | Biotricity vs. HealthEquity | Biotricity vs. Health Catalyst |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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