Correlation Between CitiGroup and DZK
Can any of the company-specific risk be diversified away by investing in both CitiGroup and DZK 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 DZK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CitiGroup and DZK, you can compare the effects of market volatilities on CitiGroup and DZK 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 DZK. Check out your portfolio center. Please also check ongoing floating volatility patterns of CitiGroup and DZK.
Diversification Opportunities for CitiGroup and DZK
Pay attention - limited upside
The 3 months correlation between CitiGroup and DZK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CitiGroup and DZK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DZK 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 DZK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DZK has no effect on the direction of CitiGroup i.e., CitiGroup and DZK go up and down completely randomly.
Pair Corralation between CitiGroup and DZK
If you would invest (100.00) in DZK on January 25, 2024 and sell it today you would earn a total of 100.00 from holding DZK or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CitiGroup vs. DZK
Performance |
Timeline |
CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
DZK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CitiGroup and DZK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CitiGroup and DZK
The main advantage of trading using opposite CitiGroup and DZK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CitiGroup position performs unexpectedly, DZK 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 DZK will offset losses from the drop in DZK's long position.CitiGroup vs. ProShares Ultra Bloomberg | CitiGroup vs. Direxion Daily Semiconductor | CitiGroup vs. MicroSectors Big Oil | CitiGroup vs. Direxion Daily SP |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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