Correlation Between Citigroup and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Citigroup and BW OFFSHORE 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 BW OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BW OFFSHORE LTD, you can compare the effects of market volatilities on Citigroup and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BW OFFSHORE.
Diversification Opportunities for Citigroup and BW OFFSHORE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and XY81 is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Citigroup i.e., Citigroup and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Citigroup and BW OFFSHORE
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the BW OFFSHORE. In addition to that, Citigroup is 1.16 times more volatile than BW OFFSHORE LTD. It trades about -0.11 of its total potential returns per unit of risk. BW OFFSHORE LTD is currently generating about 0.19 per unit of volatility. If you would invest 296.00 in BW OFFSHORE LTD on July 18, 2025 and sell it today you would earn a total of 18.00 from holding BW OFFSHORE LTD or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BW OFFSHORE LTD
Performance |
| Timeline |
| Citigroup |
| BW OFFSHORE LTD |
Citigroup and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BW OFFSHORE
The main advantage of trading using opposite Citigroup and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
| BW OFFSHORE vs. United Insurance Holdings | BW OFFSHORE vs. Salesforce | BW OFFSHORE vs. VIENNA INSURANCE GR | BW OFFSHORE vs. YATRA ONLINE DL 0001 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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