Correlation Between Citigroup and Maj Invest
Can any of the company-specific risk be diversified away by investing in both Citigroup and Maj Invest 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 Maj Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Maj Invest , you can compare the effects of market volatilities on Citigroup and Maj Invest 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 Maj Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Maj Invest.
Diversification Opportunities for Citigroup and Maj Invest
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Maj is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Maj Invest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maj Invest 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 Maj Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maj Invest has no effect on the direction of Citigroup i.e., Citigroup and Maj Invest go up and down completely randomly.
Pair Corralation between Citigroup and Maj Invest
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Maj Invest. In addition to that, Citigroup is 4.09 times more volatile than Maj Invest . It trades about -0.05 of its total potential returns per unit of risk. Maj Invest is currently generating about -0.14 per unit of volatility. If you would invest 10,027 in Maj Invest on January 20, 2024 and sell it today you would lose (99.00) from holding Maj Invest or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Maj Invest
Performance |
| Timeline |
| Citigroup |
| Maj Invest |
Citigroup and Maj Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Maj Invest
The main advantage of trading using opposite Citigroup and Maj Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Maj Invest 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 Maj Invest will offset losses from the drop in Maj Invest's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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