Correlation Between Citigroup and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allianzgi Nfj 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 Allianzgi Nfj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allianzgi Nfj Mid Cap, you can compare the effects of market volatilities on Citigroup and Allianzgi Nfj 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 Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allianzgi Nfj.
Diversification Opportunities for Citigroup and Allianzgi Nfj
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and ALLIANZGI is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Nfj Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Mid 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 Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Mid has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Citigroup and Allianzgi Nfj
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.51 times more return on investment than Allianzgi Nfj. However, Citigroup is 2.51 times more volatile than Allianzgi Nfj Mid Cap. It trades about 0.21 of its potential returns per unit of risk. Allianzgi Nfj Mid Cap is currently generating about 0.17 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Allianzgi Nfj Mid Cap
Performance |
| Timeline |
| Citigroup |
| Allianzgi Nfj Mid |
Citigroup and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allianzgi Nfj
The main advantage of trading using opposite Citigroup and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Allianzgi Nfj vs. Allianzgi Nfj International | Allianzgi Nfj vs. Allianzgi Emerging Markets | Allianzgi Nfj vs. Allianzgi Global Water | Allianzgi Nfj vs. Allianzgi International Small Cap |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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