Correlation Between Citigroup and Amot Investments
Can any of the company-specific risk be diversified away by investing in both Citigroup and Amot Investments 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 Amot Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Amot Investments, you can compare the effects of market volatilities on Citigroup and Amot Investments 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 Amot Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Amot Investments.
Diversification Opportunities for Citigroup and Amot Investments
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Amot is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Amot Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amot Investments 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 Amot Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amot Investments has no effect on the direction of Citigroup i.e., Citigroup and Amot Investments go up and down completely randomly.
Pair Corralation between Citigroup and Amot Investments
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.72 times more return on investment than Amot Investments. However, Citigroup is 1.39 times less risky than Amot Investments. It trades about -0.05 of its potential returns per unit of risk. Amot Investments is currently generating about -0.33 per unit of risk. If you would invest 6,013 in Citigroup on January 20, 2024 and sell it today you would lose (99.00) from holding Citigroup or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
Citigroup vs. Amot Investments
Performance |
| Timeline |
| Citigroup |
| Amot Investments |
Citigroup and Amot Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Amot Investments
The main advantage of trading using opposite Citigroup and Amot Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Amot Investments 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 Amot Investments will offset losses from the drop in Amot Investments' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Amot Investments vs. Migdal Insurance | Amot Investments vs. The Phoenix Holdings | Amot Investments vs. Harel Insurance Investments | Amot Investments vs. Clal Insurance Enterprises |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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