Correlation Between Citigroup and Aristotle Small
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aristotle Small 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 Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aristotle Small Cap, you can compare the effects of market volatilities on Citigroup and Aristotle Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aristotle Small.
Diversification Opportunities for Citigroup and Aristotle Small
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Aristotle is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aristotle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Small 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 Aristotle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Small Cap has no effect on the direction of Citigroup i.e., Citigroup and Aristotle Small go up and down completely randomly.
Pair Corralation between Citigroup and Aristotle Small
If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Aristotle Small Cap
Performance |
| Timeline |
| Citigroup |
| Aristotle Small Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Aristotle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aristotle Small
The main advantage of trading using opposite Citigroup and Aristotle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aristotle Small 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 Small will offset losses from the drop in Aristotle Small's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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