Correlation Between Citigroup and Brill Shoe
Can any of the company-specific risk be diversified away by investing in both Citigroup and Brill Shoe 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 Brill Shoe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Brill Shoe Industries, you can compare the effects of market volatilities on Citigroup and Brill Shoe 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 Brill Shoe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Brill Shoe.
Diversification Opportunities for Citigroup and Brill Shoe
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Brill is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Brill Shoe Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brill Shoe Industries 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 Brill Shoe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brill Shoe Industries has no effect on the direction of Citigroup i.e., Citigroup and Brill Shoe go up and down completely randomly.
Pair Corralation between Citigroup and Brill Shoe
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.15 times less return on investment than Brill Shoe. But when comparing it to its historical volatility, Citigroup is 4.05 times less risky than Brill Shoe. It trades about 0.05 of its potential returns per unit of risk. Brill Shoe Industries is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 115,500 in Brill Shoe Industries on January 26, 2024 and sell it today you would earn a total of 3,200 from holding Brill Shoe Industries or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Citigroup vs. Brill Shoe Industries
Performance |
| Timeline |
| Citigroup |
| Brill Shoe Industries |
Citigroup and Brill Shoe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Brill Shoe
The main advantage of trading using opposite Citigroup and Brill Shoe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Brill Shoe 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 Brill Shoe will offset losses from the drop in Brill Shoe's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Brill Shoe vs. Clal Insurance Enterprises | Brill Shoe vs. Israel Discount Bank | Brill Shoe vs. Bezeq Israeli Telecommunication | Brill Shoe vs. Alony Hetz Properties |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |