Correlation Between Citigroup and Aristotle/saul Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aristotle/saul Global 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/saul Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aristotlesaul Global Eq, you can compare the effects of market volatilities on Citigroup and Aristotle/saul Global 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/saul Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aristotle/saul Global.
Diversification Opportunities for Citigroup and Aristotle/saul Global
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Aristotle/saul is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aristotlesaul Global Eq in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle/saul Global 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/saul Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle/saul Global has no effect on the direction of Citigroup i.e., Citigroup and Aristotle/saul Global go up and down completely randomly.
Pair Corralation between Citigroup and Aristotle/saul Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.57 times more return on investment than Aristotle/saul Global. However, Citigroup is 2.57 times more volatile than Aristotlesaul Global Eq. It trades about 0.07 of its potential returns per unit of risk. Aristotlesaul Global Eq is currently generating about 0.03 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Aristotlesaul Global Eq
Performance |
| Timeline |
| Citigroup |
| Aristotle/saul Global |
Citigroup and Aristotle/saul Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aristotle/saul Global
The main advantage of trading using opposite Citigroup and Aristotle/saul Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aristotle/saul Global 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/saul Global will offset losses from the drop in Aristotle/saul Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Aristotle/saul Global vs. Aristotle Funds Series | Aristotle/saul Global vs. Aristotle Funds Series | Aristotle/saul Global vs. Aristotle International Eq | Aristotle/saul Global 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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