Correlation Between Phoenix Holdings and Citigroup
Can any of the company-specific risk be diversified away by investing in both Phoenix Holdings 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 Phoenix Holdings and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Phoenix Holdings and Citigroup, you can compare the effects of market volatilities on Phoenix Holdings 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 Phoenix Holdings with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Holdings and Citigroup.
Diversification Opportunities for Phoenix Holdings and Citigroup
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Phoenix and Citigroup is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Phoenix Holdings and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Phoenix Holdings 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 The Phoenix Holdings 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 Phoenix Holdings i.e., Phoenix Holdings and Citigroup go up and down completely randomly.
Pair Corralation between Phoenix Holdings and Citigroup
Assuming the 90 days trading horizon Phoenix Holdings is expected to generate 4.59 times less return on investment than Citigroup. In addition to that, Phoenix Holdings is 1.42 times more volatile than Citigroup. It trades about 0.05 of its total potential returns per unit of risk. Citigroup is currently generating about 0.3 per unit of volatility. If you would invest 3,739 in Citigroup on January 25, 2024 and sell it today you would earn a total of 2,508 from holding Citigroup or generate 67.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.49% |
| Values | Daily Returns |
The Phoenix Holdings vs. Citigroup
Performance |
| Timeline |
| Phoenix Holdings |
| Citigroup |
Phoenix Holdings and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Holdings and Citigroup
The main advantage of trading using opposite Phoenix Holdings and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Holdings 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.| Phoenix Holdings vs. Harel Insurance Investments | Phoenix Holdings vs. Migdal Insurance | Phoenix Holdings vs. Menora Miv Hld | Phoenix Holdings vs. Israel Discount Bank |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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