Correlation Between Citigroup and BankInvest Emerging
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By analyzing existing cross correlation between Citigroup and BankInvest Emerging, you can compare the effects of market volatilities on Citigroup and BankInvest Emerging 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 BankInvest Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BankInvest Emerging.
Diversification Opportunities for Citigroup and BankInvest Emerging
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and BankInvest is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BankInvest Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Emerging 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 BankInvest Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Emerging has no effect on the direction of Citigroup i.e., Citigroup and BankInvest Emerging go up and down completely randomly.
Pair Corralation between Citigroup and BankInvest Emerging
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.9 times more return on investment than BankInvest Emerging. However, Citigroup is 6.9 times more volatile than BankInvest Emerging. It trades about 0.08 of its potential returns per unit of risk. BankInvest Emerging is currently generating about -0.25 per unit of risk. If you would invest 6,095 in Citigroup on January 25, 2024 and sell it today you would earn a total of 152.00 from holding Citigroup or generate 2.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. BankInvest Emerging
Performance |
| Timeline |
| Citigroup |
| BankInvest Emerging |
Citigroup and BankInvest Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BankInvest Emerging
The main advantage of trading using opposite Citigroup and BankInvest Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BankInvest Emerging 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 BankInvest Emerging will offset losses from the drop in BankInvest Emerging's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BankInvest Emerging vs. Jyske Invest Nye | BankInvest Emerging vs. Jyske Invest Nye | BankInvest Emerging vs. Jyske Invest Hjt | BankInvest Emerging vs. Jyske Invest Lange |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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