Correlation Between Citigroup and AltShares Trust
Can any of the company-specific risk be diversified away by investing in both Citigroup and AltShares Trust 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 AltShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AltShares Trust , you can compare the effects of market volatilities on Citigroup and AltShares Trust 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 AltShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AltShares Trust.
Diversification Opportunities for Citigroup and AltShares Trust
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and AltShares is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AltShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AltShares Trust 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 AltShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AltShares Trust has no effect on the direction of Citigroup i.e., Citigroup and AltShares Trust go up and down completely randomly.
Pair Corralation between Citigroup and AltShares Trust
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.95 times more return on investment than AltShares Trust. However, Citigroup is 7.95 times more volatile than AltShares Trust . It trades about 0.15 of its potential returns per unit of risk. AltShares Trust is currently generating about 0.16 per unit of risk. If you would invest 6,968 in Citigroup on November 27, 2024 and sell it today you would earn a total of 997.00 from holding Citigroup or generate 14.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. AltShares Trust
Performance |
| Timeline |
| Citigroup |
| AltShares Trust |
Citigroup and AltShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AltShares Trust
The main advantage of trading using opposite Citigroup and AltShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AltShares Trust 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 AltShares Trust will offset losses from the drop in AltShares Trust's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AltShares Trust vs. Albany International | AltShares Trust vs. Acadia Realty Trust | AltShares Trust vs. AptarGroup | AltShares Trust vs. Applied Industrial Technologies |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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