Correlation Between Citigroup and PowerShares
Can any of the company-specific risk be diversified away by investing in both Citigroup and PowerShares 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 PowerShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PowerShares DB Crude, you can compare the effects of market volatilities on Citigroup and PowerShares 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 PowerShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PowerShares.
Diversification Opportunities for Citigroup and PowerShares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and PowerShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PowerShares DB Crude in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerShares DB Crude 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 PowerShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerShares DB Crude has no effect on the direction of Citigroup i.e., Citigroup and PowerShares go up and down completely randomly.
Pair Corralation between Citigroup and PowerShares
If you would invest 4,091 in Citigroup on September 14, 2024 and sell it today you would earn a total of 3,029 from holding Citigroup or generate 74.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. PowerShares DB Crude
Performance |
| Timeline |
| Citigroup |
| PowerShares DB Crude |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and PowerShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PowerShares
The main advantage of trading using opposite Citigroup and PowerShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PowerShares 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 PowerShares will offset losses from the drop in PowerShares' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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