Correlation Between Dean Foods and Citigroup
Can any of the company-specific risk be diversified away by investing in both Dean Foods 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 Dean Foods and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dean Foods and Citigroup, you can compare the effects of market volatilities on Dean Foods 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 Dean Foods with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dean Foods and Citigroup.
Diversification Opportunities for Dean Foods and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dean and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Dean Foods and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Dean Foods 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 Dean Foods 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 Dean Foods i.e., Dean Foods and Citigroup go up and down completely randomly.
Pair Corralation between Dean Foods and Citigroup
If you would invest (100.00) in Dean Foods on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Dean Foods 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 |
Dean Foods vs. Citigroup
Performance |
Timeline |
Dean Foods |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup |
Dean Foods and Citigroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dean Foods and Citigroup
The main advantage of trading using opposite Dean Foods and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dean Foods 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.Dean Foods vs. Sunlands Technology Group | Dean Foods vs. Weibo Corp | Dean Foods vs. Torm PLC Class | Dean Foods vs. Pinduoduo |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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