Correlation Between Citigroup and 361 Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and 361 Global 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 361 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 361 Global Longshort, you can compare the effects of market volatilities on Citigroup and 361 Global 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 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 361 Global.
Diversification Opportunities for Citigroup and 361 Global
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and 361 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort 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 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Citigroup i.e., Citigroup and 361 Global go up and down completely randomly.
Pair Corralation between Citigroup and 361 Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.37 times more return on investment than 361 Global. However, Citigroup is 4.37 times more volatile than 361 Global Longshort. It trades about 0.33 of its potential returns per unit of risk. 361 Global Longshort is currently generating about 0.08 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 907.00 from holding Citigroup or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. 361 Global Longshort
Performance |
| Timeline |
| Citigroup |
| 361 Global Longshort |
Citigroup and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 361 Global
The main advantage of trading using opposite Citigroup and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 361 Global vs. 361 Global Longshort | 361 Global vs. Swan Defined Risk | 361 Global vs. Boston Partners Longshort | 361 Global vs. 361 Global Longshort |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |