Correlation Between Filo Mining and Citigroup
Can any of the company-specific risk be diversified away by investing in both Filo Mining 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 Filo Mining and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filo Mining Corp and Citigroup, you can compare the effects of market volatilities on Filo Mining 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 Filo Mining with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filo Mining and Citigroup.
Diversification Opportunities for Filo Mining and Citigroup
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Filo and Citigroup is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Filo Mining Corp and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Filo Mining 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 Filo Mining Corp 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 Filo Mining i.e., Filo Mining and Citigroup go up and down completely randomly.
Pair Corralation between Filo Mining and Citigroup
Assuming the 90 days trading horizon Filo Mining Corp is expected to generate 1.63 times more return on investment than Citigroup. However, Filo Mining is 1.63 times more volatile than Citigroup. It trades about 0.13 of its potential returns per unit of risk. Citigroup is currently generating about 0.13 per unit of risk. If you would invest 16,300 in Filo Mining Corp on January 20, 2024 and sell it today you would earn a total of 3,080 from holding Filo Mining Corp or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Filo Mining Corp vs. Citigroup
Performance |
| Timeline |
| Filo Mining Corp |
| Citigroup |
Filo Mining and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filo Mining and Citigroup
The main advantage of trading using opposite Filo Mining and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filo Mining 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.| Filo Mining vs. Viva Wine Group | Filo Mining vs. Havsfrun Investment AB | Filo Mining vs. Train Alliance Sweden | Filo Mining vs. Leading Edge Materials |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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