Correlation Between Citigroup and Calvert Balanced
Can any of the company-specific risk be diversified away by investing in both Citigroup and Calvert Balanced 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 Calvert Balanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Calvert Balanced Portfolio, you can compare the effects of market volatilities on Citigroup and Calvert Balanced 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 Calvert Balanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Calvert Balanced.
Diversification Opportunities for Citigroup and Calvert Balanced
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Calvert is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Calvert Balanced Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Balanced Por 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 Calvert Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Balanced Por has no effect on the direction of Citigroup i.e., Citigroup and Calvert Balanced go up and down completely randomly.
Pair Corralation between Citigroup and Calvert Balanced
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.96 times more return on investment than Calvert Balanced. However, Citigroup is 2.96 times more volatile than Calvert Balanced Portfolio. It trades about 0.07 of its potential returns per unit of risk. Calvert Balanced Portfolio is currently generating about 0.1 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Calvert Balanced Portfolio
Performance |
| Timeline |
| Citigroup |
| Calvert Balanced Por |
Citigroup and Calvert Balanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Calvert Balanced
The main advantage of trading using opposite Citigroup and Calvert Balanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Calvert Balanced 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 Calvert Balanced will offset losses from the drop in Calvert Balanced's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Calvert Balanced vs. Calvert Balanced Portfolio | Calvert Balanced vs. Calvert Large Cap | Calvert Balanced vs. Calvert International Equity |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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