Correlation Between Greenbrier Companies and Citigroup
Can any of the company-specific risk be diversified away by investing in both Greenbrier Companies 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 Greenbrier Companies and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenbrier Companies and Citigroup, you can compare the effects of market volatilities on Greenbrier Companies 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 Greenbrier Companies with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenbrier Companies and Citigroup.
Diversification Opportunities for Greenbrier Companies and Citigroup
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greenbrier and Citigroup is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Greenbrier Companies and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Greenbrier Companies 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 Greenbrier Companies 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 Greenbrier Companies i.e., Greenbrier Companies and Citigroup go up and down completely randomly.
Pair Corralation between Greenbrier Companies and Citigroup
Considering the 90-day investment horizon Greenbrier Companies is expected to generate 1.78 times more return on investment than Citigroup. However, Greenbrier Companies is 1.78 times more volatile than Citigroup. It trades about 0.03 of its potential returns per unit of risk. Citigroup is currently generating about 0.04 per unit of risk. If you would invest 4,111 in Greenbrier Companies on December 29, 2023 and sell it today you would earn a total of 1,083 from holding Greenbrier Companies or generate 26.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Greenbrier Companies vs. Citigroup
Performance |
Timeline |
Greenbrier Companies |
Citigroup |
Greenbrier Companies and Citigroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Greenbrier Companies and Citigroup
The main advantage of trading using opposite Greenbrier Companies and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenbrier Companies 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.Greenbrier Companies vs. NN Inc | Greenbrier Companies vs. China Yuchai International | Greenbrier Companies vs. Sarcos Technology And | Greenbrier Companies vs. FTAI Infrastructure |
Citigroup vs. Bank Of America | Citigroup vs. Deckers Outdoor | Citigroup vs. Intuitive Machines | Citigroup vs. Liberty Interactive LLC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |