Correlation Between Averbuch Formica and Citigroup
Can any of the company-specific risk be diversified away by investing in both Averbuch Formica 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 Averbuch Formica and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Averbuch Formica Center and Citigroup, you can compare the effects of market volatilities on Averbuch Formica 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 Averbuch Formica with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Averbuch Formica and Citigroup.
Diversification Opportunities for Averbuch Formica and Citigroup
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Averbuch and Citigroup is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Averbuch Formica Center and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Averbuch Formica 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 Averbuch Formica Center 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 Averbuch Formica i.e., Averbuch Formica and Citigroup go up and down completely randomly.
Pair Corralation between Averbuch Formica and Citigroup
Assuming the 90 days trading horizon Averbuch Formica Center is expected to under-perform the Citigroup. In addition to that, Averbuch Formica is 3.43 times more volatile than Citigroup. It trades about -0.13 of its total potential returns per unit of risk. Citigroup is currently generating about 0.13 per unit of volatility. If you would invest 4,583 in Citigroup on January 24, 2024 and sell it today you would earn a total of 1,684 from holding Citigroup or generate 36.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Averbuch Formica Center vs. Citigroup
Performance |
| Timeline |
| Averbuch Formica Center |
| Citigroup |
Averbuch Formica and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Averbuch Formica and Citigroup
The main advantage of trading using opposite Averbuch Formica and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Averbuch Formica 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.| Averbuch Formica vs. Al Bad Massuot Yitzhak | Averbuch Formica vs. Gan Shmuel | Averbuch Formica vs. Analyst IMS Investment |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |