Correlation Between Citigroup and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aristotle Funds 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 Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aristotle Funds Series, you can compare the effects of market volatilities on Citigroup and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aristotle Funds.
Diversification Opportunities for Citigroup and Aristotle Funds
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Aristotle is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Citigroup i.e., Citigroup and Aristotle Funds go up and down completely randomly.
Pair Corralation between Citigroup and Aristotle Funds
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.29 times more return on investment than Aristotle Funds. However, Citigroup is 2.29 times more volatile than Aristotle Funds Series. It trades about 0.29 of its potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.17 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Aristotle Funds Series
Performance |
| Timeline |
| Citigroup |
| Aristotle Funds Series |
Citigroup and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aristotle Funds
The main advantage of trading using opposite Citigroup and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle Funds Series | Aristotle Funds vs. Aristotle International Eq | Aristotle Funds vs. Aristotle Funds Series |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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