Correlation Between Citigroup and BlackRock Municipal
Can any of the company-specific risk be diversified away by investing in both Citigroup and BlackRock Municipal 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 BlackRock Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BlackRock Municipal Income, you can compare the effects of market volatilities on Citigroup and BlackRock Municipal 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 BlackRock Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BlackRock Municipal.
Diversification Opportunities for Citigroup and BlackRock Municipal
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and BlackRock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BlackRock Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Municipal 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 BlackRock Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Municipal has no effect on the direction of Citigroup i.e., Citigroup and BlackRock Municipal go up and down completely randomly.
Pair Corralation between Citigroup and BlackRock Municipal
If you would invest 6,980 in Citigroup on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Citigroup or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. BlackRock Municipal Income
Performance |
| Timeline |
| Citigroup |
| BlackRock Municipal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and BlackRock Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BlackRock Municipal
The main advantage of trading using opposite Citigroup and BlackRock Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BlackRock Municipal 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 BlackRock Municipal will offset losses from the drop in BlackRock Municipal's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BlackRock Municipal vs. Meiwu Technology Co | BlackRock Municipal vs. NETGEAR | BlackRock Municipal vs. RadNet Inc | BlackRock Municipal vs. Centessa Pharmaceuticals PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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