Correlation Between Citigroup and Capital Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Capital Group 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 Capital Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Capital Group Fixed, you can compare the effects of market volatilities on Citigroup and Capital Group 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 Capital Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Capital Group.
Diversification Opportunities for Citigroup and Capital Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Capital Group Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Group Fixed 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 Capital Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Group Fixed has no effect on the direction of Citigroup i.e., Citigroup and Capital Group go up and down completely randomly.
Pair Corralation between Citigroup and Capital Group
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Capital Group Fixed
Performance |
| Timeline |
| Citigroup |
| Capital Group Fixed |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Citigroup and Capital Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Capital Group
The main advantage of trading using opposite Citigroup and Capital Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Capital Group 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 Capital Group will offset losses from the drop in Capital Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Capital Group vs. Valued Advisers Trust | Capital Group vs. Columbia Diversified Fixed | Capital Group vs. Principal Exchange Traded Funds | Capital Group vs. Doubleline Etf Trust |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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