Correlation Between Citigroup and Us Vector
Can any of the company-specific risk be diversified away by investing in both Citigroup and Us Vector 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 Us Vector into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Us Vector Equity, you can compare the effects of market volatilities on Citigroup and Us Vector 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 Us Vector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Us Vector.
Diversification Opportunities for Citigroup and Us Vector
Almost no diversification
The 3 months correlation between Citigroup and DFVEX is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Us Vector Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Vector Equity 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 Us Vector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Vector Equity has no effect on the direction of Citigroup i.e., Citigroup and Us Vector go up and down completely randomly.
Pair Corralation between Citigroup and Us Vector
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.69 times more return on investment than Us Vector. However, Citigroup is 1.69 times more volatile than Us Vector Equity. It trades about 0.08 of its potential returns per unit of risk. Us Vector Equity is currently generating about 0.09 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% 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. Us Vector Equity
Performance |
| Timeline |
| Citigroup |
| Us Vector Equity |
Citigroup and Us Vector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Us Vector
The main advantage of trading using opposite Citigroup and Us Vector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Us Vector 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 Us Vector will offset losses from the drop in Us Vector's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Us Vector vs. Fidelity Low Priced Stock | Us Vector vs. Fidelity Low Priced Stock | Us Vector vs. Vanguard Mid Cap Value | Us Vector vs. John Hancock Disciplined |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |