Correlation Between Citigroup and Cullen High
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cullen High 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 Cullen High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cullen High Dividend, you can compare the effects of market volatilities on Citigroup and Cullen High 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 Cullen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cullen High.
Diversification Opportunities for Citigroup and Cullen High
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Cullen is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cullen High Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen High Dividend 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 Cullen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen High Dividend has no effect on the direction of Citigroup i.e., Citigroup and Cullen High go up and down completely randomly.
Pair Corralation between Citigroup and Cullen High
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.78 times more return on investment than Cullen High. However, Citigroup is 3.78 times more volatile than Cullen High Dividend. It trades about 0.26 of its potential returns per unit of risk. Cullen High Dividend is currently generating about 0.17 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Cullen High Dividend
Performance |
| Timeline |
| Citigroup |
| Cullen High Dividend |
Citigroup and Cullen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cullen High
The main advantage of trading using opposite Citigroup and Cullen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cullen High 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 Cullen High will offset losses from the drop in Cullen High's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Cullen High vs. The Value Fund | Cullen High vs. Lazard Global Listed | Cullen High vs. Lazard International Strategic | Cullen High vs. Tcw Relative Value |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |