Correlation Between Citigroup and Jefferies
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jefferies 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 Jefferies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jefferies, you can compare the effects of market volatilities on Citigroup and Jefferies 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 Jefferies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jefferies.
Diversification Opportunities for Citigroup and Jefferies
Pay attention - limited upside
The 3 months correlation between Citigroup and Jefferies is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jefferies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jefferies 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 Jefferies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jefferies has no effect on the direction of Citigroup i.e., Citigroup and Jefferies go up and down completely randomly.
Pair Corralation between Citigroup and Jefferies
If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Jefferies
Performance |
| Timeline |
| Citigroup |
| Jefferies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Jefferies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jefferies
The main advantage of trading using opposite Citigroup and Jefferies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jefferies 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 Jefferies will offset losses from the drop in Jefferies' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jefferies vs. FT Vest Equity | Jefferies vs. Zillow Group Class | Jefferies vs. Northern Lights | Jefferies vs. VanEck Vectors Moodys |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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