Correlation Between Citigroup and Band Protocol
Can any of the company-specific risk be diversified away by investing in both Citigroup and Band Protocol 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 Band Protocol into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Band Protocol, you can compare the effects of market volatilities on Citigroup and Band Protocol 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 Band Protocol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Band Protocol.
Diversification Opportunities for Citigroup and Band Protocol
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Band is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Band Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Band Protocol 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 Band Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Band Protocol has no effect on the direction of Citigroup i.e., Citigroup and Band Protocol go up and down completely randomly.
Pair Corralation between Citigroup and Band Protocol
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.85 times less return on investment than Band Protocol. But when comparing it to its historical volatility, Citigroup is 5.72 times less risky than Band Protocol. It trades about 0.3 of its potential returns per unit of risk. Band Protocol is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Band Protocol on May 30, 2025 and sell it today you would earn a total of 22.00 from holding Band Protocol or generate 34.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Band Protocol
Performance |
| Timeline |
| Citigroup |
| Band Protocol |
Citigroup and Band Protocol Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Band Protocol
The main advantage of trading using opposite Citigroup and Band Protocol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Band Protocol 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 Band Protocol will offset losses from the drop in Band Protocol's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Royal Bank of | Citigroup vs. Canadian Imperial Bank |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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