Correlation Between Citigroup and Dreyfus Diversified
Can any of the company-specific risk be diversified away by investing in both Citigroup and Dreyfus Diversified 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 Dreyfus Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Dreyfus Diversified International, you can compare the effects of market volatilities on Citigroup and Dreyfus Diversified 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 Dreyfus Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dreyfus Diversified.
Diversification Opportunities for Citigroup and Dreyfus Diversified
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Dreyfus is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dreyfus Diversified Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Diversified 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 Dreyfus Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Diversified has no effect on the direction of Citigroup i.e., Citigroup and Dreyfus Diversified go up and down completely randomly.
Pair Corralation between Citigroup and Dreyfus Diversified
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.19 times more return on investment than Dreyfus Diversified. However, Citigroup is 2.19 times more volatile than Dreyfus Diversified International. It trades about 0.07 of its potential returns per unit of risk. Dreyfus Diversified International is currently generating about 0.07 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,898 from holding Citigroup or generate 70.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 83.47% |
| Values | Daily Returns |
Citigroup vs. Dreyfus Diversified Internatio
Performance |
| Timeline |
| Citigroup |
| Dreyfus Diversified |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Dreyfus Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dreyfus Diversified
The main advantage of trading using opposite Citigroup and Dreyfus Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dreyfus Diversified 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 Dreyfus Diversified will offset losses from the drop in Dreyfus Diversified's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Dreyfus Diversified vs. Lord Abbett Small | Dreyfus Diversified vs. Victory Rs Partners | Dreyfus Diversified vs. Heartland Value Plus | Dreyfus Diversified vs. Mid Cap Growth Profund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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