Correlation Between Cerner Corp and CitiGroup
Can any of the company-specific risk be diversified away by investing in both Cerner Corp 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 Cerner Corp and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cerner Corp and CitiGroup, you can compare the effects of market volatilities on Cerner Corp 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 Cerner Corp with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cerner Corp and CitiGroup.
Diversification Opportunities for Cerner Corp and CitiGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cerner and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cerner Corp and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and Cerner Corp 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 Cerner Corp 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 Cerner Corp i.e., Cerner Corp and CitiGroup go up and down completely randomly.
Pair Corralation between Cerner Corp and CitiGroup
If you would invest (100.00) in CitiGroup on January 26, 2024 and sell it today you would earn a total of 100.00 from holding CitiGroup or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cerner Corp vs. CitiGroup
Performance |
| Timeline |
| Cerner Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cerner Corp and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cerner Corp and CitiGroup
The main advantage of trading using opposite Cerner Corp and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cerner Corp 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.| Cerner Corp vs. Zumiez Inc | Cerner Corp vs. SEI Investments | Cerner Corp vs. Kontoor Brands | Cerner Corp vs. Inflection Point Acquisition |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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