Correlation Between Century Bancorp and Citigroup
Can any of the company-specific risk be diversified away by investing in both Century Bancorp and Citigroup 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 Century Bancorp and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Bancorp and Citigroup, you can compare the effects of market volatilities on Century Bancorp and Citigroup 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 Century Bancorp with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Bancorp and Citigroup.
Diversification Opportunities for Century Bancorp and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Century and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Century Bancorp and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Century Bancorp 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 Century Bancorp are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Century Bancorp i.e., Century Bancorp and Citigroup go up and down completely randomly.
Pair Corralation between Century Bancorp and Citigroup
If you would invest 4,784 in Citigroup on January 26, 2024 and sell it today you would earn a total of 1,463 from holding Citigroup or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Century Bancorp vs. Citigroup
Performance |
| Timeline |
| Century Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citigroup |
Century Bancorp and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Century Bancorp and Citigroup
The main advantage of trading using opposite Century Bancorp and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Bancorp position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| Century Bancorp vs. NeogamesSA | Century Bancorp vs. Turning Point Brands | Century Bancorp vs. Molson Coors Brewing | Century Bancorp vs. BRC Inc |
| Citigroup vs. Aquagold International | Citigroup vs. Thrivent High Yield | Citigroup vs. Morningstar Unconstrained Allocation | Citigroup vs. Via Renewables |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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