Correlation Between Citigroup and American Century
Can any of the company-specific risk be diversified away by investing in both Citigroup and American Century 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 American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and American Century Large, you can compare the effects of market volatilities on Citigroup and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and American Century.
Diversification Opportunities for Citigroup and American Century
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and American Century Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century Large 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 American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century Large has no effect on the direction of Citigroup i.e., Citigroup and American Century go up and down completely randomly.
Pair Corralation between Citigroup and American Century
If you would invest 4,054 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,196 from holding Citigroup or generate 78.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. American Century Large
Performance |
| Timeline |
| Citigroup |
| American Century Large |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and American Century
The main advantage of trading using opposite Citigroup and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| American Century vs. Vanguard Total Stock | American Century vs. SPDR SP 500 | American Century vs. iShares Core SP | American Century vs. Vanguard Total Bond |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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