Correlation Between Citigroup and Columbia Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Columbia Capital 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 Columbia Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Columbia Capital Allocation, you can compare the effects of market volatilities on Citigroup and Columbia Capital 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 Columbia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Columbia Capital.
Diversification Opportunities for Citigroup and Columbia Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Columbia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Columbia Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Capital All 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 Columbia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Capital All has no effect on the direction of Citigroup i.e., Citigroup and Columbia Capital go up and down completely randomly.
Pair Corralation between Citigroup and Columbia Capital
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.31 times more return on investment than Columbia Capital. However, Citigroup is 3.31 times more volatile than Columbia Capital Allocation. It trades about 0.07 of its potential returns per unit of risk. Columbia Capital Allocation is currently generating about 0.09 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Columbia Capital Allocation
Performance |
| Timeline |
| Citigroup |
| Columbia Capital All |
Citigroup and Columbia Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Columbia Capital
The main advantage of trading using opposite Citigroup and Columbia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Columbia Capital 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 Columbia Capital will offset losses from the drop in Columbia Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Columbia Capital vs. The Gabelli Small | Columbia Capital vs. Guggenheim Diversified Income | Columbia Capital vs. Jhancock Diversified Macro | Columbia Capital vs. Delaware Limited Term Diversified |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |