Correlation Between Citigroup and Domini Impact
Can any of the company-specific risk be diversified away by investing in both Citigroup and Domini Impact 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 Domini Impact into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Domini Impact Equity, you can compare the effects of market volatilities on Citigroup and Domini Impact 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 Domini Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Domini Impact.
Diversification Opportunities for Citigroup and Domini Impact
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Domini is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Domini Impact Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Domini Impact 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 Domini Impact. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Domini Impact Equity has no effect on the direction of Citigroup i.e., Citigroup and Domini Impact go up and down completely randomly.
Pair Corralation between Citigroup and Domini Impact
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.84 times more return on investment than Domini Impact. However, Citigroup is 1.84 times more volatile than Domini Impact Equity. It trades about 0.07 of its potential returns per unit of risk. Domini Impact Equity is currently generating about 0.09 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Domini Impact Equity
Performance |
| Timeline |
| Citigroup |
| Domini Impact Equity |
Citigroup and Domini Impact Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Domini Impact
The main advantage of trading using opposite Citigroup and Domini Impact positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Domini Impact 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 Domini Impact will offset losses from the drop in Domini Impact's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Domini Impact vs. The National Tax Free | Domini Impact vs. Ms Global Fixed | Domini Impact vs. Artisan High Income | Domini Impact vs. T Rowe Price |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |