Correlation Between Citigroup and ASM International
Can any of the company-specific risk be diversified away by investing in both Citigroup and ASM International 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 ASM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ASM International NV, you can compare the effects of market volatilities on Citigroup and ASM International 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 ASM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ASM International.
Diversification Opportunities for Citigroup and ASM International
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and ASM is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ASM International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASM International 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 ASM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASM International has no effect on the direction of Citigroup i.e., Citigroup and ASM International go up and down completely randomly.
Pair Corralation between Citigroup and ASM International
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than ASM International. However, Citigroup is 1.67 times less risky than ASM International. It trades about 0.38 of its potential returns per unit of risk. ASM International NV is currently generating about 0.04 per unit of risk. If you would invest 6,774 in Citigroup on April 26, 2025 and sell it today you would earn a total of 2,765 from holding Citigroup or generate 40.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 96.88% |
Values | Daily Returns |
Citigroup vs. ASM International NV
Performance |
Timeline |
Citigroup |
ASM International |
Citigroup and ASM International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and ASM International
The main advantage of trading using opposite Citigroup and ASM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ASM International 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 ASM International will offset losses from the drop in ASM International's long position.Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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