Correlation Between Citigroup and Glanbia PLC
Can any of the company-specific risk be diversified away by investing in both Citigroup and Glanbia PLC 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 Glanbia PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Glanbia PLC, you can compare the effects of market volatilities on Citigroup and Glanbia PLC 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 Glanbia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Glanbia PLC.
Diversification Opportunities for Citigroup and Glanbia PLC
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Glanbia is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Glanbia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glanbia PLC 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 Glanbia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glanbia PLC has no effect on the direction of Citigroup i.e., Citigroup and Glanbia PLC go up and down completely randomly.
Pair Corralation between Citigroup and Glanbia PLC
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.43 times less return on investment than Glanbia PLC. In addition to that, Citigroup is 1.28 times more volatile than Glanbia PLC. It trades about 0.06 of its total potential returns per unit of risk. Glanbia PLC is currently generating about 0.1 per unit of volatility. If you would invest 988.00 in Glanbia PLC on January 25, 2024 and sell it today you would earn a total of 796.00 from holding Glanbia PLC or generate 80.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.7% |
| Values | Daily Returns |
Citigroup vs. Glanbia PLC
Performance |
| Timeline |
| Citigroup |
| Glanbia PLC |
Citigroup and Glanbia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Glanbia PLC
The main advantage of trading using opposite Citigroup and Glanbia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Glanbia PLC 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 Glanbia PLC will offset losses from the drop in Glanbia PLC's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Glanbia PLC vs. Kingspan Group plc | Glanbia PLC vs. Smurfit Kappa Group | Glanbia PLC vs. Bank of Ireland |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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