This module allows you to analyze existing cross correlation between International Business Machines and Citigroup. You can compare the effects of market volatilities on International Business 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 International Business with a short position of Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of International Business and Citigroup.
|Horizon||30 Days Login to change|
Over the last 30 days International Business Machines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Citigroup is not utilizing all of its potentials. The new stock price disturbance, may contribute to short term losses for the investors.
International Business and Citigroup Volatility Contrast
Predicted Return Density
International Business Machine vs. Citigroup Inc
Considering 30-days investment horizon, International Business Machines is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, International Business Machines is 1.2 times less risky than Citigroup. The stock trades about -0.09 of its potential returns per unit of risk. The Citigroup is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 7,058 in Citigroup on September 20, 2019 and sell it today you would lose (84.00) from holding Citigroup or give up 1.19% of portfolio value over 30 days.
Pair Corralation between International Business and Citigroup
|Time Period||3 Months [change]|
Diversification Opportunities for International Business and Citigroup
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding International Business Machine and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and International Business 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 International Business Machines 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 International Business i.e. International Business and Citigroup go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .