Correlation Between Citigroup and Advisors Inner
Can any of the company-specific risk be diversified away by investing in both Citigroup and Advisors Inner 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 Advisors Inner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Advisors Inner Circle, you can compare the effects of market volatilities on Citigroup and Advisors Inner 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 Advisors Inner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Advisors Inner.
Diversification Opportunities for Citigroup and Advisors Inner
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Advisors is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Advisors Inner Circle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisors Inner Circle 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 Advisors Inner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisors Inner Circle has no effect on the direction of Citigroup i.e., Citigroup and Advisors Inner go up and down completely randomly.
Pair Corralation between Citigroup and Advisors Inner
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.65 times more return on investment than Advisors Inner. However, Citigroup is 1.65 times more volatile than Advisors Inner Circle. It trades about 0.12 of its potential returns per unit of risk. Advisors Inner Circle is currently generating about -0.02 per unit of risk. If you would invest 4,364 in Citigroup on September 14, 2024 and sell it today you would earn a total of 2,737 from holding Citigroup or generate 62.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Citigroup vs. Advisors Inner Circle
Performance |
| Timeline |
| Citigroup |
| Advisors Inner Circle |
Citigroup and Advisors Inner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Advisors Inner
The main advantage of trading using opposite Citigroup and Advisors Inner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Advisors Inner 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 Advisors Inner will offset losses from the drop in Advisors Inner's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Advisors Inner vs. Bmo In Retirement Fund | Advisors Inner vs. Barrow Hanley Credit | Advisors Inner vs. Barrow Hanley Value | Advisors Inner vs. Advisors Inner Circle |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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