This module allows you to analyze existing cross correlation between Citigroup Inc and Apple Inc. You can compare the effects of market volatilities on Citigroup and Apple 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 Apple. See also your portfolio center
. Please also check ongoing floating volatility patterns of Citigroup
Citigroup Inc vs Apple Inc
Taking into account the 30 trading days horizon, Citigroup Inc is expected to generate 0.82 times more return on investment than Apple. However, Citigroup Inc is 1.22 times less risky than Apple. It trades about 0.24 of its potential returns per unit of risk. Apple Inc is currently generating about 0.16 per unit of risk. If you would invest 7,466 in Citigroup Inc on December 20, 2017 and sell it today you would earn a total of 273 from holding Citigroup Inc or generate 3.66% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Inc are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Citigroup i.e. Citigroup and Apple go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.