Correlation Between Citigroup and Delaware Small
Can any of the company-specific risk be diversified away by investing in both Citigroup and Delaware Small 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 Delaware Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Delaware Small Cap, you can compare the effects of market volatilities on Citigroup and Delaware Small 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 Delaware Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Delaware Small.
Diversification Opportunities for Citigroup and Delaware Small
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Delaware is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Delaware Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Small Cap 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 Delaware Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Small Cap has no effect on the direction of Citigroup i.e., Citigroup and Delaware Small go up and down completely randomly.
Pair Corralation between Citigroup and Delaware Small
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.4 times more return on investment than Delaware Small. However, Citigroup is 1.4 times more volatile than Delaware Small Cap. It trades about 0.08 of its potential returns per unit of risk. Delaware Small Cap is currently generating about 0.09 per unit of risk. If you would invest 5,405 in Citigroup on August 29, 2024 and sell it today you would earn a total of 1,570 from holding Citigroup or generate 29.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Delaware Small Cap
Performance |
| Timeline |
| Citigroup |
| Delaware Small Cap |
Citigroup and Delaware Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Delaware Small
The main advantage of trading using opposite Citigroup and Delaware Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Delaware Small 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 Delaware Small will offset losses from the drop in Delaware Small's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Delaware Small vs. Transamerica Funds | Delaware Small vs. Blrc Sgy Mnp | Delaware Small vs. Ambrus Core Bond | Delaware Small vs. Versatile Bond Portfolio |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |