Correlation Between Citigroup and Allianzgi Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allianzgi Global 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 Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allianzgi Global Small Cap, you can compare the effects of market volatilities on Citigroup and Allianzgi Global 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 Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allianzgi Global.
Diversification Opportunities for Citigroup and Allianzgi Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Allianzgi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Global Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Small 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 Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Small has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Global go up and down completely randomly.
Pair Corralation between Citigroup and Allianzgi Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.35 times more return on investment than Allianzgi Global. However, Citigroup is 2.35 times more volatile than Allianzgi Global Small Cap. It trades about 0.07 of its potential returns per unit of risk. Allianzgi Global Small Cap is currently generating about 0.09 per unit of risk. If you would invest 6,064 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,023 from holding Citigroup or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Allianzgi Global Small Cap
Performance |
| Timeline |
| Citigroup |
| Allianzgi Global Small |
Citigroup and Allianzgi Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allianzgi Global
The main advantage of trading using opposite Citigroup and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allianzgi Global 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 Allianzgi Global will offset losses from the drop in Allianzgi Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Allianzgi Global vs. Shelton Emerging Markets | Allianzgi Global vs. Growth Strategy Fund | Allianzgi Global vs. Legg Mason Partners | Allianzgi Global vs. Artisan Emerging Markets |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |