Correlation Between Citigroup and Two Oaks
Can any of the company-specific risk be diversified away by investing in both Citigroup and Two Oaks 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 Two Oaks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Two Oaks Diversified, you can compare the effects of market volatilities on Citigroup and Two Oaks 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 Two Oaks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Two Oaks.
Diversification Opportunities for Citigroup and Two Oaks
Pay attention - limited upside
The 3 months correlation between Citigroup and Two is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Two Oaks Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Two Oaks Diversified 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 Two Oaks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Two Oaks Diversified has no effect on the direction of Citigroup i.e., Citigroup and Two Oaks go up and down completely randomly.
Pair Corralation between Citigroup and Two Oaks
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Two Oaks Diversified
Performance |
| Timeline |
| Citigroup |
| Two Oaks Diversified |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Two Oaks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Two Oaks
The main advantage of trading using opposite Citigroup and Two Oaks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Two Oaks 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 Two Oaks will offset losses from the drop in Two Oaks' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Two Oaks vs. First Trust Energy | Two Oaks vs. Tortoise Energy Independence | Two Oaks vs. Alpsalerian Energy Infrastructure | Two Oaks vs. Jennison Natural Resources |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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