Correlation Between Citigroup and Allianzgi Small-cap
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allianzgi Small-cap 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 Small-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allianzgi Small Cap Blend, you can compare the effects of market volatilities on Citigroup and Allianzgi Small-cap 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 Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allianzgi Small-cap.
Diversification Opportunities for Citigroup and Allianzgi Small-cap
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Allianzgi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Small Cap Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi 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 Allianzgi Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Small Cap has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Small-cap go up and down completely randomly.
Pair Corralation between Citigroup and Allianzgi Small-cap
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.55 times more return on investment than Allianzgi Small-cap. However, Citigroup is 1.55 times more volatile than Allianzgi Small Cap Blend. It trades about 0.08 of its potential returns per unit of risk. Allianzgi Small Cap Blend is currently generating about 0.08 per unit of risk. If you would invest 4,544 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,543 from holding Citigroup or generate 55.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. Allianzgi Small Cap Blend
Performance |
| Timeline |
| Citigroup |
| Allianzgi Small Cap |
Citigroup and Allianzgi Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allianzgi Small-cap
The main advantage of trading using opposite Citigroup and Allianzgi Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allianzgi Small-cap 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 Small-cap will offset losses from the drop in Allianzgi Small-cap's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Allianzgi Small-cap vs. Allianzgi Nfj International | Allianzgi Small-cap vs. Allianzgi Vertible Fund | Allianzgi Small-cap vs. Allianzgi Nfj Mid Cap | Allianzgi Small-cap vs. Allianzgi Focused Growth |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |