Correlation Between Citigroup and Catholic Rspnsbl
Can any of the company-specific risk be diversified away by investing in both Citigroup and Catholic Rspnsbl 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 Catholic Rspnsbl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Catholic Rspnsbl Invst, you can compare the effects of market volatilities on Citigroup and Catholic Rspnsbl 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 Catholic Rspnsbl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Catholic Rspnsbl.
Diversification Opportunities for Citigroup and Catholic Rspnsbl
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Catholic is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Catholic Rspnsbl Invst in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catholic Rspnsbl Invst 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 Catholic Rspnsbl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catholic Rspnsbl Invst has no effect on the direction of Citigroup i.e., Citigroup and Catholic Rspnsbl go up and down completely randomly.
Pair Corralation between Citigroup and Catholic Rspnsbl
Taking into account the 90-day investment horizon Citigroup is expected to generate 49.23 times more return on investment than Catholic Rspnsbl. However, Citigroup is 49.23 times more volatile than Catholic Rspnsbl Invst. It trades about 0.42 of its potential returns per unit of risk. Catholic Rspnsbl Invst is currently generating about 0.42 per unit of risk. If you would invest 6,919 in Citigroup on October 21, 2024 and sell it today you would earn a total of 1,080 from holding Citigroup or generate 15.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Catholic Rspnsbl Invst
Performance |
| Timeline |
| Citigroup |
| Catholic Rspnsbl Invst |
Citigroup and Catholic Rspnsbl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Catholic Rspnsbl
The main advantage of trading using opposite Citigroup and Catholic Rspnsbl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Catholic Rspnsbl 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 Catholic Rspnsbl will offset losses from the drop in Catholic Rspnsbl's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Catholic Rspnsbl vs. Cmg Ultra Short | Catholic Rspnsbl vs. Aqr Sustainable Long Short | Catholic Rspnsbl vs. Ultra Short Fixed Income | Catholic Rspnsbl vs. Touchstone Ultra Short |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |