Correlation Between Virgin Australia and Citigroup
Can any of the company-specific risk be diversified away by investing in both Virgin Australia 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 Virgin Australia and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virgin Australia Holdings and Citigroup, you can compare the effects of market volatilities on Virgin Australia 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 Virgin Australia with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Australia and Citigroup.
Diversification Opportunities for Virgin Australia and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virgin and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Australia Holdings and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Virgin Australia 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 Virgin Australia 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 Virgin Australia i.e., Virgin Australia and Citigroup go up and down completely randomly.
Pair Corralation between Virgin Australia and Citigroup
If you would invest (100.00) in Virgin Australia Holdings on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Virgin Australia Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Virgin Australia Holdings vs. Citigroup
Performance |
| Timeline |
| Virgin Australia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citigroup |
Virgin Australia and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Australia and Citigroup
The main advantage of trading using opposite Virgin Australia and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Australia 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.| Virgin Australia vs. Marfrig Global Foods | Virgin Australia vs. Casio Computer Co | Virgin Australia vs. Grupo Televisa SAB | Virgin Australia vs. Grocery Outlet Holding |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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