Correlation Between Citigroup and MICS Old
Can any of the company-specific risk be diversified away by investing in both Citigroup and MICS Old 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 MICS Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MICS Old, you can compare the effects of market volatilities on Citigroup and MICS Old 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 MICS Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MICS Old.
Diversification Opportunities for Citigroup and MICS Old
Pay attention - limited upside
The 3 months correlation between Citigroup and MICS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MICS Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICS Old 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 MICS Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICS Old has no effect on the direction of Citigroup i.e., Citigroup and MICS Old go up and down completely randomly.
Pair Corralation between Citigroup and MICS Old
If you would invest 6,833 in Citigroup on April 29, 2025 and sell it today you would earn a total of 2,722 from holding Citigroup or generate 39.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. MICS Old
Performance |
Timeline |
Citigroup |
MICS Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and MICS Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and MICS Old
The main advantage of trading using opposite Citigroup and MICS Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MICS Old 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 MICS Old will offset losses from the drop in MICS Old's long position.The idea behind Citigroup and MICS Old 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.MICS Old vs. Koss Corporation | MICS Old vs. Emerson Radio | MICS Old vs. Wearable Devices | MICS Old vs. Zepp Health Corp |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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