This module allows you to analyze existing cross correlation between Citigroup and Sprint Corporation. You can compare the effects of market volatilities on Citigroup and Sprint 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 Sprint. See also your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sprint.
|Horizon||30 Days Login to change|
Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest sluggish performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Over the last 30 days Sprint Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Sprint is not utilizing all of its potentials. The prevalent stock price agitation, may contribute to short term losses for the management.
Citigroup and Sprint Volatility Contrast
Predicted Return Density
Citigroup Inc vs. Sprint Corp.
Taking into account the 30 trading days horizon, Citigroup is expected to under-perform the Sprint. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.56 times less risky than Sprint. The stock trades about -0.07 of its potential returns per unit of risk. The Sprint Corporation is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 684.00 in Sprint Corporation on July 23, 2019 and sell it today you would lose (6.00) from holding Sprint Corporation or give up 0.88% of portfolio value over 30 days.
Pair Corralation between Citigroup and Sprint
|Time Period||2 Months [change]|
Diversification Opportunities for Citigroup and Sprint
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Citigroup Inc and Sprint Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sprint 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 Sprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint has no effect on the direction of Citigroup i.e. Citigroup and Sprint go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Matrix module to view fundamentals matrix and analyze how accounts are interrelated and interconnected with each other.