Correlation Between Citigroup and ProShares MSCI
Can any of the company-specific risk be diversified away by investing in both Citigroup and ProShares MSCI 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 ProShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ProShares MSCI Emerging, you can compare the effects of market volatilities on Citigroup and ProShares MSCI 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 ProShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ProShares MSCI.
Diversification Opportunities for Citigroup and ProShares MSCI
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and ProShares is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ProShares MSCI Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares MSCI Emerging 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 ProShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares MSCI Emerging has no effect on the direction of Citigroup i.e., Citigroup and ProShares MSCI go up and down completely randomly.
Pair Corralation between Citigroup and ProShares MSCI
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.73 times more return on investment than ProShares MSCI. However, Citigroup is 1.73 times more volatile than ProShares MSCI Emerging. It trades about 0.07 of its potential returns per unit of risk. ProShares MSCI Emerging is currently generating about -0.02 per unit of risk. If you would invest 4,812 in Citigroup on October 24, 2024 and sell it today you would earn a total of 3,391 from holding Citigroup or generate 70.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. ProShares MSCI Emerging
Performance |
| Timeline |
| Citigroup |
| ProShares MSCI Emerging |
Citigroup and ProShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ProShares MSCI
The main advantage of trading using opposite Citigroup and ProShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ProShares MSCI 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 ProShares MSCI will offset losses from the drop in ProShares MSCI's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| ProShares MSCI vs. ProShares MSCI EAFE | ProShares MSCI vs. ProShares MSCI Europe | ProShares MSCI vs. ProShares Russell 2000 | ProShares MSCI vs. ProShares SP MidCap |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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