This module allows you to analyze existing cross correlation between Citigroup Inc and Alphabet Inc. You can compare the effects of market volatilities on Citigroup and Alphabet 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 Alphabet. See also your portfolio center
. Please also check ongoing floating volatility patterns of Citigroup
Citigroup Inc vs Alphabet Inc
Taking into account the 30 trading days horizon, Citigroup is expected to generate 1.96 times less return on investment than Alphabet. In addition to that, Citigroup is 1.39 times more volatile than Alphabet Inc. It trades about 0.13 of its total potential returns per unit of risk. Alphabet Inc is currently generating about 0.34 per unit of volatility. If you would invest 92,853 in Alphabet Inc on September 22, 2017 and sell it today you would earn a total of 5,967 from holding Alphabet Inc or generate 6.43% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Alphabet Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Inc 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 Inc are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Inc has no effect on the direction of Citigroup i.e. Citigroup and Alphabet go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Alphabet Inc are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.