Correlation Between Citigroup and Ab Large
Can any of the company-specific risk be diversified away by investing in both Citigroup and Ab Large 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 Ab Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Ab Large Cap, you can compare the effects of market volatilities on Citigroup and Ab Large 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 Ab Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ab Large.
Diversification Opportunities for Citigroup and Ab Large
Very good diversification
The 3 months correlation between Citigroup and APGCX is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ab Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Large Cap 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 Ab Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Large Cap has no effect on the direction of Citigroup i.e., Citigroup and Ab Large go up and down completely randomly.
Pair Corralation between Citigroup and Ab Large
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Ab Large. In addition to that, Citigroup is 1.97 times more volatile than Ab Large Cap. It trades about -0.12 of its total potential returns per unit of risk. Ab Large Cap is currently generating about -0.12 per unit of volatility. If you would invest 6,052 in Ab Large Cap on November 27, 2024 and sell it today you would lose (134.00) from holding Ab Large Cap or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Ab Large Cap
Performance |
| Timeline |
| Citigroup |
| Ab Large Cap |
Citigroup and Ab Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ab Large
The main advantage of trading using opposite Citigroup and Ab Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ab Large 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 Ab Large will offset losses from the drop in Ab Large's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ab Large vs. Ab Sustainable Global | Ab Large vs. Ab Relative Value | Ab Large vs. Davis New York | Ab Large vs. Victory Munder Multi 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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