This module allows you to analyze existing cross correlation between Sprint Corporation and Citigroup Inc. You can compare the effects of market volatilities on Sprint 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 Sprint with a short position of Citigroup. See also your portfolio center
. Please also check ongoing floating volatility patterns of Sprint
Sprint Corp. vs Citigroup Inc.
Taking into account the 30 trading days horizon, Sprint Corporation is expected to under-perform the Citigroup. In addition to that, Sprint is 3.7 times more volatile than Citigroup Inc. It trades about -0.07 of its total potential returns per unit of risk. Citigroup Inc is currently generating about 0.19 per unit of volatility. If you would invest 5,946 in Citigroup Inc on April 30, 2017 and sell it today you would earn a total of 261.00 from holding Citigroup Inc or generate 4.39% return on investment over 30 days.
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Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Sprint Corp. and Citigroup Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup Inc and Sprint 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 Sprint Corporation 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 Inc has no effect on the direction of Sprint i.e. Sprint and Citigroup go up and down completely randomly.
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.