Correlation Between Citigroup and Allianzgi Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allianzgi 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 Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allianzgi Global Water, you can compare the effects of market volatilities on Citigroup and Allianzgi 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 Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allianzgi Global.
Diversification Opportunities for Citigroup and Allianzgi Global
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Allianzgi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Water 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 Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Water has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Global go up and down completely randomly.
Pair Corralation between Citigroup and Allianzgi Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.91 times more return on investment than Allianzgi Global. However, Citigroup is 1.91 times more volatile than Allianzgi Global Water. It trades about 0.1 of its potential returns per unit of risk. Allianzgi Global Water is currently generating about 0.08 per unit of risk. If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 60.51% |
| Values | Daily Returns |
Citigroup vs. Allianzgi Global Water
Performance |
| Timeline |
| Citigroup |
| Allianzgi Global Water |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Allianzgi Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allianzgi Global
The main advantage of trading using opposite Citigroup and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allianzgi 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 Allianzgi Global will offset losses from the drop in Allianzgi Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Allianzgi Global vs. Jhancock Disciplined Value | Allianzgi Global vs. Dodge Cox Stock | Allianzgi Global vs. Transamerica Large Cap | Allianzgi Global vs. Fidelity Series 1000 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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