Correlation Between Citigroup and Ivy Science

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

By analyzing existing cross correlation between Citigroup and Ivy Science And, you can compare the effects of market volatilities on Citigroup and Ivy Science 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 Ivy Science. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ivy Science.

Diversification Opportunities for Citigroup and Ivy Science

0.46

Correlation Coefficient

Citigroup  Ivy Science

Very weak diversification

The 3 months correlation between Citigroup and Ivy is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ivy Science And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ivy Science And 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 Ivy Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ivy Science And has no effect on the direction of Citigroup i.e., Citigroup and Ivy Science go up and down completely randomly.

Pair Corralation between Citigroup and Ivy Science

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.99 times more return on investment than Ivy Science. However, Citigroup is 1.01 times less risky than Ivy Science. It trades about -0.02 of its potential returns per unit of risk. Ivy Science And is currently generating about -0.14 per unit of risk. If you would invest  6,324  in Citigroup on January 28, 2024 and sell it today you would lose (58.00) from holding Citigroup or give up 0.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Ivy Science And

Citigroup

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Ivy Science And

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ivy Science And are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ivy Science is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Ivy Science

The main advantage of trading using opposite Citigroup and Ivy Science positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ivy Science 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 Ivy Science will offset losses from the drop in Ivy Science's long position.

The idea behind Citigroup and Ivy Science And pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..