Correlation Between Citigroup and Delaware Investments
Can any of the company-specific risk be diversified away by investing in both Citigroup and Delaware Investments 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 Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Delaware Investments Ultrashort, you can compare the effects of market volatilities on Citigroup and Delaware Investments 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 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Delaware Investments.
Diversification Opportunities for Citigroup and Delaware Investments
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Delaware is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Delaware Investments Ultrashor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Investments 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 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Investments has no effect on the direction of Citigroup i.e., Citigroup and Delaware Investments go up and down completely randomly.
Pair Corralation between Citigroup and Delaware Investments
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.16 times more return on investment than Delaware Investments. However, Citigroup is 5.16 times more volatile than Delaware Investments Ultrashort. It trades about 0.23 of its potential returns per unit of risk. Delaware Investments Ultrashort is currently generating about 0.13 per unit of risk. If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 271.00 from holding Citigroup or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Delaware Investments Ultrashor
Performance |
| Timeline |
| Citigroup |
| Delaware Investments |
Citigroup and Delaware Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Delaware Investments
The main advantage of trading using opposite Citigroup and Delaware Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Delaware Investments 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 Investments will offset losses from the drop in Delaware Investments' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Delaware Investments vs. Optimum Small Mid Cap | Delaware Investments vs. Optimum Small Mid Cap | Delaware Investments vs. Ivy Apollo Multi Asset | Delaware Investments vs. Optimum Fixed Income |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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