Correlation Between Citigroup and Manning Napier
Can any of the company-specific risk be diversified away by investing in both Citigroup and Manning Napier 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 Manning Napier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Manning Napier Callodine, you can compare the effects of market volatilities on Citigroup and Manning Napier 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 Manning Napier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Manning Napier.
Diversification Opportunities for Citigroup and Manning Napier
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Manning is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Manning Napier Callodine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manning Napier Callodine 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 Manning Napier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manning Napier Callodine has no effect on the direction of Citigroup i.e., Citigroup and Manning Napier go up and down completely randomly.
Pair Corralation between Citigroup and Manning Napier
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.11 times less return on investment than Manning Napier. In addition to that, Citigroup is 1.8 times more volatile than Manning Napier Callodine. It trades about 0.08 of its total potential returns per unit of risk. Manning Napier Callodine is currently generating about 0.17 per unit of volatility. If you would invest 1,056 in Manning Napier Callodine on September 2, 2024 and sell it today you would earn a total of 516.00 from holding Manning Napier Callodine or generate 48.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.27% |
| Values | Daily Returns |
Citigroup vs. Manning Napier Callodine
Performance |
| Timeline |
| Citigroup |
| Manning Napier Callodine |
Citigroup and Manning Napier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Manning Napier
The main advantage of trading using opposite Citigroup and Manning Napier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Manning Napier 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 Manning Napier will offset losses from the drop in Manning Napier's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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