Correlation Between CitiGroup and ProShares Ultra

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both CitiGroup and ProShares Ultra 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 ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CitiGroup and ProShares Ultra Gold, you can compare the effects of market volatilities on CitiGroup and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of CitiGroup and ProShares Ultra.

Diversification Opportunities for CitiGroup and ProShares Ultra

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between CitiGroup and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CitiGroup and ProShares Ultra Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Gold 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Gold has no effect on the direction of CitiGroup i.e., CitiGroup and ProShares Ultra go up and down completely randomly.

Pair Corralation between CitiGroup and ProShares Ultra

If you would invest  5,970  in ProShares Ultra Gold on December 29, 2023 and sell it today you would earn a total of  1,073  from holding ProShares Ultra Gold or generate 17.97% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

CitiGroup  vs.  ProShares Ultra Gold

 Performance 
       Timeline  
CitiGroup 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days CitiGroup has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CitiGroup is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
ProShares Ultra Gold 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Ultra Gold are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting technical and fundamental indicators, ProShares Ultra may actually be approaching a critical reversion point that can send shares even higher in April 2024.

CitiGroup and ProShares Ultra Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CitiGroup and ProShares Ultra

The main advantage of trading using opposite CitiGroup and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CitiGroup position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra's long position.
The idea behind CitiGroup and ProShares Ultra Gold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum