Correlation Between Citigroup and Hostess Brands
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hostess Brands 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 Hostess Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hostess Brands, you can compare the effects of market volatilities on Citigroup and Hostess Brands 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 Hostess Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hostess Brands.
Diversification Opportunities for Citigroup and Hostess Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Hostess is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hostess Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hostess Brands 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 Hostess Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hostess Brands has no effect on the direction of Citigroup i.e., Citigroup and Hostess Brands go up and down completely randomly.
Pair Corralation between Citigroup and Hostess Brands
If you would invest 6,095 in Citigroup on January 24, 2024 and sell it today you would earn a total of 172.00 from holding Citigroup or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Hostess Brands
Performance |
| Timeline |
| Citigroup |
| Hostess Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Hostess Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hostess Brands
The main advantage of trading using opposite Citigroup and Hostess Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hostess Brands 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 Hostess Brands will offset losses from the drop in Hostess Brands' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hostess Brands vs. Eldorado Gold Corp | Hostess Brands vs. Old Dominion Freight | Hostess Brands vs. East Africa Metals | Hostess Brands vs. TFI International |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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