Correlation Between Citigroup and Columbia Real
Can any of the company-specific risk be diversified away by investing in both Citigroup and Columbia Real 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 Columbia Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Columbia Real Estate, you can compare the effects of market volatilities on Citigroup and Columbia Real 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 Columbia Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Columbia Real.
Diversification Opportunities for Citigroup and Columbia Real
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Columbia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Columbia Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Real Estate 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 Columbia Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Real Estate has no effect on the direction of Citigroup i.e., Citigroup and Columbia Real go up and down completely randomly.
Pair Corralation between Citigroup and Columbia Real
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Columbia Real. In addition to that, Citigroup is 2.29 times more volatile than Columbia Real Estate. It trades about -0.05 of its total potential returns per unit of risk. Columbia Real Estate is currently generating about 0.12 per unit of volatility. If you would invest 949.00 in Columbia Real Estate on December 11, 2024 and sell it today you would earn a total of 44.00 from holding Columbia Real Estate or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Columbia Real Estate
Performance |
| Timeline |
| Citigroup |
| Columbia Real Estate |
Citigroup and Columbia Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Columbia Real
The main advantage of trading using opposite Citigroup and Columbia Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Columbia Real 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 Columbia Real will offset losses from the drop in Columbia Real's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Columbia Real vs. T Rowe Price | Columbia Real vs. The Esg Growth | Columbia Real vs. Morningstar Growth Etf | Columbia Real vs. Upright Growth Income |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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