Correlation Between Citigroup and Guardian Dividend
Can any of the company-specific risk be diversified away by investing in both Citigroup and Guardian Dividend 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 Guardian Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guardian Dividend Growth, you can compare the effects of market volatilities on Citigroup and Guardian Dividend 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 Guardian Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guardian Dividend.
Diversification Opportunities for Citigroup and Guardian Dividend
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Guardian is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guardian Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Dividend Growth 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 Guardian Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Dividend Growth has no effect on the direction of Citigroup i.e., Citigroup and Guardian Dividend go up and down completely randomly.
Pair Corralation between Citigroup and Guardian Dividend
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.02 times more return on investment than Guardian Dividend. However, Citigroup is 4.02 times more volatile than Guardian Dividend Growth. It trades about 0.27 of its potential returns per unit of risk. Guardian Dividend Growth is currently generating about 0.24 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guardian Dividend Growth
Performance |
| Timeline |
| Citigroup |
| Guardian Dividend Growth |
Citigroup and Guardian Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guardian Dividend
The main advantage of trading using opposite Citigroup and Guardian Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guardian Dividend 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 Guardian Dividend will offset losses from the drop in Guardian Dividend's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guardian Dividend vs. Guardian Fundamental Global | Guardian Dividend vs. Fidelity Total Market | Guardian Dividend vs. Pgim Jennison Diversified | Guardian Dividend vs. Russell 2000 2x |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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