Correlation Between Schouw and Citigroup
Can any of the company-specific risk be diversified away by investing in both Schouw 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 Schouw and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schouw Co and Citigroup, you can compare the effects of market volatilities on Schouw 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 Schouw with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schouw and Citigroup.
Diversification Opportunities for Schouw and Citigroup
Excellent diversification
The 3 months correlation between Schouw and Citigroup is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Schouw Co and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Schouw 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 Schouw Co 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 Schouw i.e., Schouw and Citigroup go up and down completely randomly.
Pair Corralation between Schouw and Citigroup
Assuming the 90 days trading horizon Schouw Co is expected to under-perform the Citigroup. In addition to that, Schouw is 1.1 times more volatile than Citigroup. It trades about -0.19 of its total potential returns per unit of risk. Citigroup is currently generating about 0.22 per unit of volatility. If you would invest 5,536 in Citigroup on January 25, 2024 and sell it today you would earn a total of 712.00 from holding Citigroup or generate 12.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Schouw Co vs. Citigroup
Performance |
| Timeline |
| Schouw |
| Citigroup |
Schouw and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schouw and Citigroup
The main advantage of trading using opposite Schouw and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schouw 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.| Schouw vs. ROCKWOOL International AS | Schouw vs. Tryg AS | Schouw vs. DSV Panalpina AS | Schouw vs. GN Store Nord |
| 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |