Correlation Between Levinski Ofer and Citigroup
Can any of the company-specific risk be diversified away by investing in both Levinski Ofer 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 Levinski Ofer and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Levinski Ofer and Citigroup, you can compare the effects of market volatilities on Levinski Ofer 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 Levinski Ofer with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Levinski Ofer and Citigroup.
Diversification Opportunities for Levinski Ofer and Citigroup
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Levinski and Citigroup is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Levinski Ofer and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Levinski Ofer 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 Levinski Ofer 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 Levinski Ofer i.e., Levinski Ofer and Citigroup go up and down completely randomly.
Pair Corralation between Levinski Ofer and Citigroup
Assuming the 90 days trading horizon Levinski Ofer is expected to under-perform the Citigroup. In addition to that, Levinski Ofer is 2.89 times more volatile than Citigroup. It trades about -0.02 of its total potential returns per unit of risk. Citigroup is currently generating about 0.1 per unit of volatility. If you would invest 4,567 in Citigroup on January 26, 2024 and sell it today you would earn a total of 1,680 from holding Citigroup or generate 36.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.65% |
| Values | Daily Returns |
Levinski Ofer vs. Citigroup
Performance |
| Timeline |
| Levinski Ofer |
| Citigroup |
Levinski Ofer and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Levinski Ofer and Citigroup
The main advantage of trading using opposite Levinski Ofer and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Levinski Ofer 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.| Levinski Ofer vs. Augwind Energy Tech | Levinski Ofer vs. Enlight Renewable Energy | Levinski Ofer vs. Maytronics | Levinski Ofer vs. Fattal 1998 Holdings |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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