Correlation Between Benefytt Technologies and Citigroup
Can any of the company-specific risk be diversified away by investing in both Benefytt Technologies 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 Benefytt Technologies and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benefytt Technologies and Citigroup, you can compare the effects of market volatilities on Benefytt Technologies 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 Benefytt Technologies with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benefytt Technologies and Citigroup.
Diversification Opportunities for Benefytt Technologies and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benefytt and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benefytt Technologies and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Benefytt Technologies 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 Benefytt Technologies 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 Benefytt Technologies i.e., Benefytt Technologies and Citigroup go up and down completely randomly.
Pair Corralation between Benefytt Technologies and Citigroup
If you would invest (100.00) in Benefytt Technologies on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Benefytt Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Benefytt Technologies vs. Citigroup
Performance |
| Timeline |
| Benefytt Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citigroup |
Benefytt Technologies and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benefytt Technologies and Citigroup
The main advantage of trading using opposite Benefytt Technologies and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benefytt Technologies 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.| Benefytt Technologies vs. Tower Semiconductor | Benefytt Technologies vs. KLA Tencor | Benefytt Technologies vs. Valens | Benefytt Technologies vs. Advanced Micro Devices |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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