Correlation Between American Funds and CITIGROUP
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By analyzing existing cross correlation between American Funds Fundamental and CITIGROUP INC 6675, you can compare the effects of market volatilities on American Funds and CITIGROUP 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 American Funds with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and CITIGROUP.
Diversification Opportunities for American Funds and CITIGROUP
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between American and CITIGROUP is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Fundamental and CITIGROUP INC 6675 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6675 and American Funds 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 American Funds Fundamental are associated (or correlated) with CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6675 has no effect on the direction of American Funds i.e., American Funds and CITIGROUP go up and down completely randomly.
Pair Corralation between American Funds and CITIGROUP
Assuming the 90 days horizon American Funds Fundamental is expected to generate 0.76 times more return on investment than CITIGROUP. However, American Funds Fundamental is 1.31 times less risky than CITIGROUP. It trades about 0.12 of its potential returns per unit of risk. CITIGROUP INC 6675 is currently generating about -0.14 per unit of risk. If you would invest 8,194 in American Funds Fundamental on October 23, 2024 and sell it today you would earn a total of 144.00 from holding American Funds Fundamental or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
American Funds Fundamental vs. CITIGROUP INC 6675
Performance |
| Timeline |
| American Funds Funda |
| CITIGROUP INC 6675 |
American Funds and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and CITIGROUP
The main advantage of trading using opposite American Funds and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds position performs unexpectedly, CITIGROUP 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 will offset losses from the drop in CITIGROUP's long position.| American Funds vs. Small Pany Growth | American Funds vs. Needham Small Cap | American Funds vs. Praxis Small Cap | American Funds vs. Franklin Small Cap |
| CITIGROUP vs. Hunter Creek Mining | CITIGROUP vs. Yuexiu Transport Infrastructure | CITIGROUP vs. Mesa Air Group | CITIGROUP vs. 51Talk Online Education |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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