Correlation Between Citigroup and Mfs Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mfs 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 Mfs Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mfs Global Alternative, you can compare the effects of market volatilities on Citigroup and Mfs 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 Mfs Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mfs Global.
Diversification Opportunities for Citigroup and Mfs Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Mfs is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mfs Global Alternative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Global Alternative 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 Mfs Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Global Alternative has no effect on the direction of Citigroup i.e., Citigroup and Mfs Global go up and down completely randomly.
Pair Corralation between Citigroup and Mfs Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.28 times more return on investment than Mfs Global. However, Citigroup is 8.28 times more volatile than Mfs Global Alternative. It trades about 0.21 of its potential returns per unit of risk. Mfs Global Alternative is currently generating about 0.03 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Mfs Global Alternative
Performance |
| Timeline |
| Citigroup |
| Mfs Global Alternative |
Citigroup and Mfs Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mfs Global
The main advantage of trading using opposite Citigroup and Mfs Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mfs 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 Mfs Global will offset losses from the drop in Mfs Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mfs Global vs. Ambrus Core Bond | Mfs Global vs. Artisan High Income | Mfs Global vs. Angel Oak Financial | Mfs Global vs. John Hancock Money |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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