Correlation Between Citigroup and Catalyst/lyons Tactical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Catalyst/lyons Tactical 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 Catalyst/lyons Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Catalystlyons Tactical Allocation, you can compare the effects of market volatilities on Citigroup and Catalyst/lyons Tactical 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 Catalyst/lyons Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Catalyst/lyons Tactical.
Diversification Opportunities for Citigroup and Catalyst/lyons Tactical
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Catalyst/lyons is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Catalystlyons Tactical Allocat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/lyons Tactical 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 Catalyst/lyons Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/lyons Tactical has no effect on the direction of Citigroup i.e., Citigroup and Catalyst/lyons Tactical go up and down completely randomly.
Pair Corralation between Citigroup and Catalyst/lyons Tactical
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.94 times more return on investment than Catalyst/lyons Tactical. However, Citigroup is 1.94 times more volatile than Catalystlyons Tactical Allocation. It trades about -0.04 of its potential returns per unit of risk. Catalystlyons Tactical Allocation is currently generating about -0.18 per unit of risk. If you would invest 8,130 in Citigroup on December 1, 2024 and sell it today you would lose (135.00) from holding Citigroup or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Catalystlyons Tactical Allocat
Performance |
| Timeline |
| Citigroup |
| Catalyst/lyons Tactical |
Citigroup and Catalyst/lyons Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Catalyst/lyons Tactical
The main advantage of trading using opposite Citigroup and Catalyst/lyons Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Catalyst/lyons Tactical 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 Catalyst/lyons Tactical will offset losses from the drop in Catalyst/lyons Tactical'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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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