This module allows you to analyze existing cross correlation between Apple and Citigroup. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Citigroup. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
Over the last 30 days Apple has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions.
Apple and Citigroup Volatility Contrast
Apple Inc vs. Citigroup Inc
Given the investment horizon of 30 days, Apple is expected to generate 1.56 times less return on investment than Citigroup. In addition to that, Apple is 1.53 times more volatile than Citigroup. It trades about 0.17 of its total potential returns per unit of risk. Citigroup is currently generating about 0.4 per unit of volatility. If you would invest 4,926 in Citigroup on January 21, 2019 and sell it today you would earn a total of 1,535 from holding Citigroup or generate 31.16% return on investment over 30 days.
Pair Corralation between Apple and Citigroup
|Time Period||2 Months [change]|
Diversification Opportunities for Apple and Citigroup
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Apple 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 Apple 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 Apple i.e. Apple and Citigroup go up and down completely randomly.