Correlation Between Citigroup and Xtrackers Harvest
Can any of the company-specific risk be diversified away by investing in both Citigroup and Xtrackers Harvest 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 Xtrackers Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Xtrackers Harvest CSI300, you can compare the effects of market volatilities on Citigroup and Xtrackers Harvest 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 Xtrackers Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xtrackers Harvest.
Diversification Opportunities for Citigroup and Xtrackers Harvest
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Xtrackers is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xtrackers Harvest CSI300 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers Harvest CSI300 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 Xtrackers Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers Harvest CSI300 has no effect on the direction of Citigroup i.e., Citigroup and Xtrackers Harvest go up and down completely randomly.
Pair Corralation between Citigroup and Xtrackers Harvest
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Xtrackers Harvest. However, Citigroup is 1.03 times more volatile than Xtrackers Harvest CSI300. It trades about 0.08 of its potential returns per unit of risk. Xtrackers Harvest CSI300 is currently generating about 0.01 per unit of risk. If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.67% |
| Values | Daily Returns |
Citigroup vs. Xtrackers Harvest CSI300
Performance |
| Timeline |
| Citigroup |
| Xtrackers Harvest CSI300 |
Citigroup and Xtrackers Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Xtrackers Harvest
The main advantage of trading using opposite Citigroup and Xtrackers Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xtrackers Harvest 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 Xtrackers Harvest will offset losses from the drop in Xtrackers Harvest's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Xtrackers Harvest vs. Xtrackers MSCI | Xtrackers Harvest vs. Xtrackers FTSE 250 | Xtrackers Harvest vs. Xtrackers Ie Plc | Xtrackers Harvest vs. Xtrackers Russell 2000 |
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.
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