Correlation Between Adobe Systems and Citigroup
Can any of the company-specific risk be diversified away by investing in both Adobe Systems 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 Adobe Systems and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adobe Systems Incorporated and Citigroup, you can compare the effects of market volatilities on Adobe Systems 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 Adobe Systems with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adobe Systems and Citigroup.
Diversification Opportunities for Adobe Systems and Citigroup
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Adobe and Citigroup is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Adobe Systems Incorporated and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Adobe Systems 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 Adobe Systems Incorporated 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 Adobe Systems i.e., Adobe Systems and Citigroup go up and down completely randomly.
Pair Corralation between Adobe Systems and Citigroup
Given the investment horizon of 90 days Adobe Systems is expected to generate 1.03 times less return on investment than Citigroup. In addition to that, Adobe Systems is 1.3 times more volatile than Citigroup. It trades about 0.03 of its total potential returns per unit of risk. Citigroup is currently generating about 0.04 per unit of volatility. If you would invest 4,784 in Citigroup on January 26, 2024 and sell it today you would earn a total of 1,463 from holding Citigroup or generate 30.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Adobe Systems Incorporated vs. Citigroup
Performance |
| Timeline |
| Adobe Systems rporated |
| Citigroup |
Adobe Systems and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adobe Systems and Citigroup
The main advantage of trading using opposite Adobe Systems and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adobe Systems 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.| Adobe Systems vs. SentinelOne | Adobe Systems vs. MongoDB | Adobe Systems vs. Zscaler | Adobe Systems vs. Okta Inc |
| Citigroup vs. Aquagold International | Citigroup vs. Thrivent High Yield | Citigroup vs. Morningstar Unconstrained Allocation | Citigroup vs. Via Renewables |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |