Correlation Between Citigroup and Delaware High-yield
Can any of the company-specific risk be diversified away by investing in both Citigroup and Delaware High-yield 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 High-yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Delaware High Yield Opportunities, you can compare the effects of market volatilities on Citigroup and Delaware High-yield 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 High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Delaware High-yield.
Diversification Opportunities for Citigroup and Delaware High-yield
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Delaware is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Delaware High Yield Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware High Yield 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 High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware High Yield has no effect on the direction of Citigroup i.e., Citigroup and Delaware High-yield go up and down completely randomly.
Pair Corralation between Citigroup and Delaware High-yield
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.82 times more return on investment than Delaware High-yield. However, Citigroup is 4.82 times more volatile than Delaware High Yield Opportunities. It trades about 0.07 of its potential returns per unit of risk. Delaware High Yield Opportunities is currently generating about 0.08 per unit of risk. If you would invest 4,218 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.65% |
| Values | Daily Returns |
Citigroup vs. Delaware High Yield Opportunit
Performance |
| Timeline |
| Citigroup |
| Delaware High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Delaware High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Delaware High-yield
The main advantage of trading using opposite Citigroup and Delaware High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Delaware High-yield 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 High-yield will offset losses from the drop in Delaware High-yield's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Delaware High-yield vs. T Rowe Price | Delaware High-yield vs. Alternative Asset Allocation | Delaware High-yield vs. Aqr Large Cap | Delaware High-yield vs. Goldman Sachs Large |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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