Correlation Between Apple and CITIGROUP CDR
Can any of the company-specific risk be diversified away by investing in both Apple and CITIGROUP CDR 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 Apple and CITIGROUP CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and CITIGROUP CDR, you can compare the effects of market volatilities on Apple and CITIGROUP CDR 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 Apple with a short position of CITIGROUP CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and CITIGROUP CDR.
Diversification Opportunities for Apple and CITIGROUP CDR
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apple and CITIGROUP is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and CITIGROUP CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP CDR and Apple 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 Apple Inc CDR are associated (or correlated) with CITIGROUP CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP CDR has no effect on the direction of Apple i.e., Apple and CITIGROUP CDR go up and down completely randomly.
Pair Corralation between Apple and CITIGROUP CDR
Assuming the 90 days trading horizon Apple is expected to generate 13.94 times less return on investment than CITIGROUP CDR. But when comparing it to its historical volatility, Apple Inc CDR is 1.01 times less risky than CITIGROUP CDR. It trades about 0.03 of its potential returns per unit of risk. CITIGROUP CDR is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 2,859 in CITIGROUP CDR on April 25, 2025 and sell it today you would earn a total of 1,160 from holding CITIGROUP CDR or generate 40.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Apple Inc CDR vs. CITIGROUP CDR
Performance |
Timeline |
Apple Inc CDR |
CITIGROUP CDR |
Apple and CITIGROUP CDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apple and CITIGROUP CDR
The main advantage of trading using opposite Apple and CITIGROUP CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, CITIGROUP CDR 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 CDR will offset losses from the drop in CITIGROUP CDR's long position.Apple vs. DIRTT Environmental Solutions | Apple vs. Brookfield Asset Management | Apple vs. Verizon Communications CDR | Apple vs. Hill Street Beverage |
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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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