Correlation Between Taya Inv and Citigroup
Can any of the company-specific risk be diversified away by investing in both Taya Inv 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 Taya Inv and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taya Inv L and Citigroup, you can compare the effects of market volatilities on Taya Inv 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 Taya Inv with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taya Inv and Citigroup.
Diversification Opportunities for Taya Inv and Citigroup
Good diversification
The 3 months correlation between Taya and Citigroup is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Taya Inv L and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Taya Inv 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 Taya Inv L 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 Taya Inv i.e., Taya Inv and Citigroup go up and down completely randomly.
Pair Corralation between Taya Inv and Citigroup
Assuming the 90 days trading horizon Taya Inv is expected to generate 22.54 times less return on investment than Citigroup. In addition to that, Taya Inv is 2.22 times more volatile than Citigroup. It trades about 0.01 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 |
Taya Inv L vs. Citigroup
Performance |
| Timeline |
| Taya Inv L |
| Citigroup |
Taya Inv and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taya Inv and Citigroup
The main advantage of trading using opposite Taya Inv and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taya Inv 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.| Taya Inv vs. Bezeq Israeli Telecommunication | Taya Inv vs. Partner | Taya Inv vs. Tower Semiconductor | Taya Inv 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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