Correlation Between Citigroup and PT Wintermar

Can any of the company-specific risk be diversified away by investing in both Citigroup and PT Wintermar 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 PT Wintermar into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and PT Wintermar Offshore, you can compare the effects of market volatilities on Citigroup and PT Wintermar 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 PT Wintermar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PT Wintermar.

Diversification Opportunities for Citigroup and PT Wintermar

-0.65

Correlation Coefficient

Citigroup  PT Wintermar

Excellent diversification

The 3 months correlation between Citigroup and W6O is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PT Wintermar Offshore in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Wintermar Offshore 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 PT Wintermar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Wintermar Offshore has no effect on the direction of Citigroup i.e., Citigroup and PT Wintermar go up and down completely randomly.

Pair Corralation between Citigroup and PT Wintermar

Taking into account the 90-day investment horizon Citigroup is expected to generate 5.06 times less return on investment than PT Wintermar. But when comparing it to its historical volatility, Citigroup is 5.96 times less risky than PT Wintermar. It trades about 0.07 of its potential returns per unit of risk. PT Wintermar Offshore is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.15  in PT Wintermar Offshore on September 26, 2024 and sell it today you would earn a total of  1.35  from holding PT Wintermar Offshore or generate 117.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.22%
Values	Daily Returns

Citigroup  vs.  PT Wintermar Offshore

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

PT Wintermar Offshore

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PT Wintermar Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, PT Wintermar is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and PT Wintermar

The main advantage of trading using opposite Citigroup and PT Wintermar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PT Wintermar 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 PT Wintermar will offset losses from the drop in PT Wintermar's long position.

The idea behind Citigroup and PT Wintermar Offshore 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.

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.