Correlation Between Sparinvest INDEX and Citigroup
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sparinvest INDEX Lav and Citigroup, you can compare the effects of market volatilities on Sparinvest INDEX 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 Sparinvest INDEX with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparinvest INDEX and Citigroup.
Diversification Opportunities for Sparinvest INDEX and Citigroup
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sparinvest and Citigroup is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sparinvest INDEX Lav and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Sparinvest INDEX 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 Sparinvest INDEX Lav 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 Sparinvest INDEX i.e., Sparinvest INDEX and Citigroup go up and down completely randomly.
Pair Corralation between Sparinvest INDEX and Citigroup
Assuming the 90 days trading horizon Sparinvest INDEX is expected to generate 14.53 times less return on investment than Citigroup. But when comparing it to its historical volatility, Sparinvest INDEX Lav is 5.51 times less risky than Citigroup. It trades about 0.01 of its potential returns per unit of risk. Citigroup is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,468 in Citigroup on January 19, 2024 and sell it today you would earn a total of 1,388 from holding Citigroup or generate 31.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sparinvest INDEX Lav vs. Citigroup
Performance |
| Timeline |
| Sparinvest INDEX Lav |
| Citigroup |
Sparinvest INDEX and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sparinvest INDEX and Citigroup
The main advantage of trading using opposite Sparinvest INDEX and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparinvest INDEX 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.| Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Nye | Sparinvest INDEX vs. Jyske Invest Hjt | Sparinvest INDEX vs. Jyske Invest Lange |
| 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
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| CEOs Directory Screen CEOs from public companies around the world |