Correlation Between Heico and CitiGroup
Can any of the company-specific risk be diversified away by investing in both Heico 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 Heico and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heico and CitiGroup, you can compare the effects of market volatilities on Heico 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 Heico with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heico and CitiGroup.
Diversification Opportunities for Heico and CitiGroup
Pay attention - limited upside
The 3 months correlation between Heico and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Heico and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and Heico 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 Heico 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 Heico i.e., Heico and CitiGroup go up and down completely randomly.
Pair Corralation between Heico and CitiGroup
If you would invest 17,059 in Heico on January 26, 2024 and sell it today you would earn a total of 3,416 from holding Heico or generate 20.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Heico vs. CitiGroup
Performance |
| Timeline |
| Heico |
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Heico and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heico and CitiGroup
The main advantage of trading using opposite Heico and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heico 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.| Heico vs. HEICO | Heico vs. L3Harris Technologies | Heico vs. Huntington Ingalls Industries | Heico vs. Lockheed Martin |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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