Correlation Between Citigroup and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aqr Managed 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 Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aqr Managed Futures, you can compare the effects of market volatilities on Citigroup and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aqr Managed.
Diversification Opportunities for Citigroup and Aqr Managed
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Aqr is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Citigroup i.e., Citigroup and Aqr Managed go up and down completely randomly.
Pair Corralation between Citigroup and Aqr Managed
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.25 times more return on investment than Aqr Managed. However, Citigroup is 3.25 times more volatile than Aqr Managed Futures. It trades about 0.25 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% 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. Aqr Managed Futures
Performance |
| Timeline |
| Citigroup |
| Aqr Managed Futures |
Citigroup and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aqr Managed
The main advantage of trading using opposite Citigroup and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Aqr Managed vs. Ab All Market | Aqr Managed vs. Artisan Emerging Markets | Aqr Managed vs. T Rowe Price | Aqr Managed vs. Aqr Equity Market |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |