Correlation Between Citigroup and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and Bond Fund 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 Bond Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Bond Fund Of, you can compare the effects of market volatilities on Citigroup and Bond Fund 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 Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bond Fund.
Diversification Opportunities for Citigroup and Bond Fund
Pay attention - limited upside
The 3 months correlation between Citigroup and Bond is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund 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 Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Citigroup i.e., Citigroup and Bond Fund go up and down completely randomly.
Pair Corralation between Citigroup and Bond Fund
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.84 times more return on investment than Bond Fund. However, Citigroup is 3.84 times more volatile than Bond Fund Of. It trades about 0.07 of its potential returns per unit of risk. Bond Fund Of is currently generating about 0.03 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Bond Fund Of
Performance |
| Timeline |
| Citigroup |
| Bond Fund |
Citigroup and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Bond Fund
The main advantage of trading using opposite Citigroup and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Bond Fund vs. Transamerica Intermediate Muni | Bond Fund vs. T Rowe Price | Bond Fund vs. Counterpoint Tactical Municipal | Bond Fund vs. T Rowe Price |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |