Correlation Between Citigroup and Thrivent Large
Can any of the company-specific risk be diversified away by investing in both Citigroup and Thrivent Large 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 Thrivent Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Thrivent Large Cap, you can compare the effects of market volatilities on Citigroup and Thrivent Large 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 Thrivent Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Thrivent Large.
Diversification Opportunities for Citigroup and Thrivent Large
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Thrivent is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Thrivent Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thrivent Large Cap 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 Thrivent Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thrivent Large Cap has no effect on the direction of Citigroup i.e., Citigroup and Thrivent Large go up and down completely randomly.
Pair Corralation between Citigroup and Thrivent Large
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.8 times more return on investment than Thrivent Large. However, Citigroup is 2.8 times more volatile than Thrivent Large Cap. It trades about 0.07 of its potential returns per unit of risk. Thrivent Large Cap is currently generating about 0.13 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Thrivent Large Cap
Performance |
| Timeline |
| Citigroup |
| Thrivent Large Cap |
Citigroup and Thrivent Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Thrivent Large
The main advantage of trading using opposite Citigroup and Thrivent Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Thrivent Large 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 Thrivent Large will offset losses from the drop in Thrivent Large's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Thrivent Large vs. Thrivent Partner Worldwide | Thrivent Large vs. Thrivent Partner Worldwide | Thrivent Large vs. Thrivent Large Cap | Thrivent Large vs. Thrivent Limited Maturity |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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