Correlation Between GMV Minerals and Citigroup
Can any of the company-specific risk be diversified away by investing in both GMV Minerals 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 GMV Minerals and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMV Minerals and Citigroup, you can compare the effects of market volatilities on GMV Minerals 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 GMV Minerals with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMV Minerals and Citigroup.
Diversification Opportunities for GMV Minerals and Citigroup
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GMV and Citigroup is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding GMV Minerals and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and GMV Minerals 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 GMV Minerals 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 GMV Minerals i.e., GMV Minerals and Citigroup go up and down completely randomly.
Pair Corralation between GMV Minerals and Citigroup
Assuming the 90 days horizon GMV Minerals is expected to generate 7.99 times more return on investment than Citigroup. However, GMV Minerals is 7.99 times more volatile than Citigroup. It trades about 0.13 of its potential returns per unit of risk. Citigroup is currently generating about -0.1 per unit of risk. If you would invest 14.00 in GMV Minerals on January 20, 2024 and sell it today you would earn a total of 3.00 from holding GMV Minerals or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GMV Minerals vs. Citigroup
Performance |
| Timeline |
| GMV Minerals |
| Citigroup |
GMV Minerals and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMV Minerals and Citigroup
The main advantage of trading using opposite GMV Minerals and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMV Minerals 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.| GMV Minerals vs. Q Gold Resources | GMV Minerals vs. MAS Gold Corp | GMV Minerals vs. ExGen Resources | GMV Minerals vs. Carlin Gold |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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