Correlation Between Citigroup and Delaware Extended
Can any of the company-specific risk be diversified away by investing in both Citigroup and Delaware Extended 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 Extended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Delaware Extended Duration, you can compare the effects of market volatilities on Citigroup and Delaware Extended 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 Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Delaware Extended.
Diversification Opportunities for Citigroup and Delaware Extended
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Delaware is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Delaware Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Extended 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 Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Extended has no effect on the direction of Citigroup i.e., Citigroup and Delaware Extended go up and down completely randomly.
Pair Corralation between Citigroup and Delaware Extended
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.08 times more return on investment than Delaware Extended. However, Citigroup is 3.08 times more volatile than Delaware Extended Duration. It trades about 0.07 of its potential returns per unit of risk. Delaware Extended Duration is currently generating about 0.06 per unit of risk. If you would invest 6,079 in Citigroup on August 30, 2024 and sell it today you would earn a total of 937.00 from holding Citigroup or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Delaware Extended Duration
Performance |
| Timeline |
| Citigroup |
| Delaware Extended |
Citigroup and Delaware Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Delaware Extended
The main advantage of trading using opposite Citigroup and Delaware Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Delaware Extended 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 Extended will offset losses from the drop in Delaware Extended's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Delaware Extended vs. Optimum Small Mid Cap | Delaware Extended vs. Optimum Small Mid Cap | Delaware Extended vs. Ivy Apollo Multi Asset | Delaware Extended vs. Optimum Fixed Income |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Global Correlations Find global opportunities by holding instruments from different markets |