Correlation Between Citigroup and Shelton Tactical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Shelton Tactical 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 Shelton Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Shelton Tactical Credit, you can compare the effects of market volatilities on Citigroup and Shelton Tactical 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 Shelton Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shelton Tactical.
Diversification Opportunities for Citigroup and Shelton Tactical
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Shelton is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shelton Tactical Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Tactical Credit 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 Shelton Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Tactical Credit has no effect on the direction of Citigroup i.e., Citigroup and Shelton Tactical go up and down completely randomly.
Pair Corralation between Citigroup and Shelton Tactical
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.75 times more return on investment than Shelton Tactical. However, Citigroup is 6.75 times more volatile than Shelton Tactical Credit. It trades about 0.09 of its potential returns per unit of risk. Shelton Tactical Credit is currently generating about 0.12 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Shelton Tactical Credit
Performance |
| Timeline |
| Citigroup |
| Shelton Tactical Credit |
Citigroup and Shelton Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shelton Tactical
The main advantage of trading using opposite Citigroup and Shelton Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shelton Tactical 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 Shelton Tactical will offset losses from the drop in Shelton Tactical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Shelton Tactical vs. Shelton Emerging Markets | Shelton Tactical vs. Shelton Emerging Markets | Shelton Tactical vs. California Tax Free Income | Shelton Tactical vs. Shelton Funds |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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