Correlation Between Citigroup and The Brown
Can any of the company-specific risk be diversified away by investing in both Citigroup and The Brown 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 The Brown into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The Brown Capital, you can compare the effects of market volatilities on Citigroup and The Brown 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 The Brown. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and The Brown.
Diversification Opportunities for Citigroup and The Brown
Almost no diversification
The 3 months correlation between Citigroup and The is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Brown Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Capital 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 The Brown. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Capital has no effect on the direction of Citigroup i.e., Citigroup and The Brown go up and down completely randomly.
Pair Corralation between Citigroup and The Brown
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.6 times more return on investment than The Brown. However, Citigroup is 1.6 times more volatile than The Brown Capital. It trades about 0.18 of its potential returns per unit of risk. The Brown Capital is currently generating about 0.23 per unit of risk. If you would invest 5,985 in Citigroup on August 26, 2024 and sell it today you would earn a total of 999.00 from holding Citigroup or generate 16.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. The Brown Capital
Performance |
| Timeline |
| Citigroup |
| Brown Capital |
Citigroup and The Brown Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and The Brown
The main advantage of trading using opposite Citigroup and The Brown positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, The Brown 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 The Brown will offset losses from the drop in The Brown's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| The Brown vs. Pimco Moditiesplus Strategy | The Brown vs. International Fund International | The Brown vs. Cohen Steers Real | The Brown vs. New World Fund |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |