Correlation Between Citigroup and Nordea Invest

By analyzing existing cross correlation between Citigroup and Nordea Invest Global, you can compare the effects of market volatilities on Citigroup and Nordea Invest 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 Citigroup with a short position of Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nordea Invest.

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Can any of the company-specific risk be diversified away by investing in both Citigroup and Nordea Invest 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 Citigroup and Nordea Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Citigroup and Nordea Invest

-0.39
  Correlation Coefficient
Citigroup
Nordea Invest Global

Very good diversification

The 3 months correlation between Citigroup and Nordea is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Nordea Invest Global Enhanced in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global and Citigroup 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 Citigroup are associated (or correlated) with Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of Citigroup i.e. Citigroup and Nordea Invest go up and down completely randomly.

Pair Corralation between Citigroup and Nordea Invest

If you would invest  4,741  in Citigroup on June 8, 2020 and sell it today you would earn a total of  349.00  from holding Citigroup or generate 7.36% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Citigroup Inc  vs.  Nordea Invest Global Enhanced

 Performance (%) 
      Timeline 
Citigroup 
33

Citigroup Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Citigroup sustained solid returns over the last few months and may actually be approaching a breakup point.
Nordea Invest Global 
00

Nordea Invest Risk-Adjusted Performance

Over the last 30 days Nordea Invest Global has generated negative risk-adjusted returns adding no value to investors with long positions. Although quite persistent forward indicators, Nordea Invest is not utilizing all of its potentials. The current stock price mess, may contribute to short term losses for the institutional investors.

Citigroup and Nordea Invest Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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