Correlation Between Citigroup and Blackrock Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Blackrock 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 Blackrock Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Blackrock Global Impact, you can compare the effects of market volatilities on Citigroup and Blackrock 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 Blackrock Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Blackrock Global.
Diversification Opportunities for Citigroup and Blackrock Global
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 Global Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Global Impact 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Global Impact has no effect on the direction of Citigroup i.e., Citigroup and Blackrock Global go up and down completely randomly.
Pair Corralation between Citigroup and Blackrock Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.32 times more return on investment than Blackrock Global. However, Citigroup is 2.32 times more volatile than Blackrock Global Impact. It trades about 0.08 of its potential returns per unit of risk. Blackrock Global Impact is currently generating about 0.01 per unit of risk. If you would invest 4,112 in Citigroup on September 5, 2024 and sell it today you would earn a total of 3,030 from holding Citigroup or generate 73.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citigroup vs. Blackrock Global Impact
Performance |
| Timeline |
| Citigroup |
| Blackrock Global Impact |
Citigroup and Blackrock Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Blackrock Global
The main advantage of trading using opposite Citigroup and Blackrock Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Blackrock 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 Blackrock Global will offset losses from the drop in Blackrock Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Blackrock Global vs. Touchstone Large Cap | Blackrock Global vs. Rational Strategic Allocation | Blackrock Global vs. William Blair Large | Blackrock Global vs. Qs Global Equity |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |