Correlation Between Five Star and Citigroup
Can any of the company-specific risk be diversified away by investing in both Five Star 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 Five Star and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Five Star Bancorp and Citigroup, you can compare the effects of market volatilities on Five Star 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 Five Star with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Five Star and Citigroup.
Diversification Opportunities for Five Star and Citigroup
Excellent diversification
The 3 months correlation between Five and Citigroup is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Five Star Bancorp and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Five Star 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 Five Star Bancorp 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 Five Star i.e., Five Star and Citigroup go up and down completely randomly.
Pair Corralation between Five Star and Citigroup
Given the investment horizon of 90 days Five Star Bancorp is expected to under-perform the Citigroup. In addition to that, Five Star is 1.16 times more volatile than Citigroup. It trades about -0.09 of its total potential returns per unit of risk. Citigroup is currently generating about 0.01 per unit of volatility. If you would invest 6,166 in Citigroup on January 26, 2024 and sell it today you would earn a total of 13.00 from holding Citigroup or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Five Star Bancorp vs. Citigroup
Performance |
| Timeline |
| Five Star Bancorp |
| Citigroup |
Five Star and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Five Star and Citigroup
The main advantage of trading using opposite Five Star and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Five Star 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.| Five Star vs. Community West Bancshares | Five Star vs. HMN Financial | Five Star vs. First Northwest Bancorp | Five Star vs. Cullman Bancorp |
| Citigroup vs. Aquagold International | Citigroup vs. Thrivent High Yield | Citigroup vs. Morningstar Unconstrained Allocation | Citigroup vs. Via Renewables |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |