Correlation Between Citigroup and Blackrock Secured
Can any of the company-specific risk be diversified away by investing in both Citigroup and Blackrock Secured 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 Secured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Blackrock Secured Credit, you can compare the effects of market volatilities on Citigroup and Blackrock Secured 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 Secured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Blackrock Secured.
Diversification Opportunities for Citigroup and Blackrock Secured
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Blackrock is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Blackrock Secured Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Secured Credit 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 Secured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Secured Credit has no effect on the direction of Citigroup i.e., Citigroup and Blackrock Secured go up and down completely randomly.
Pair Corralation between Citigroup and Blackrock Secured
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.39 times more return on investment than Blackrock Secured. However, Citigroup is 8.39 times more volatile than Blackrock Secured Credit. It trades about 0.11 of its potential returns per unit of risk. Blackrock Secured Credit is currently generating about 0.13 per unit of risk. If you would invest 5,308 in Citigroup on November 3, 2024 and sell it today you would earn a total of 2,835 from holding Citigroup or generate 53.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Blackrock Secured Credit
Performance |
| Timeline |
| Citigroup |
| Blackrock Secured Credit |
Citigroup and Blackrock Secured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Blackrock Secured
The main advantage of trading using opposite Citigroup and Blackrock Secured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Blackrock Secured 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 Secured will offset losses from the drop in Blackrock Secured's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Blackrock Secured vs. Wmcanx | Blackrock Secured vs. Flkypx | Blackrock Secured vs. Rational Dividend Capture | Blackrock Secured vs. Ftufox |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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