Correlation Between Citigroup and Beta ETF
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By analyzing existing cross correlation between Citigroup and Beta ETF SP, you can compare the effects of market volatilities on Citigroup and Beta ETF 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 Beta ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Beta ETF.
Diversification Opportunities for Citigroup and Beta ETF
Very poor diversification
The 3 months correlation between Citigroup and Beta is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Beta ETF SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta ETF SP 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 Beta ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta ETF SP has no effect on the direction of Citigroup i.e., Citigroup and Beta ETF go up and down completely randomly.
Pair Corralation between Citigroup and Beta ETF
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.9 times more return on investment than Beta ETF. However, Citigroup is 2.9 times more volatile than Beta ETF SP. It trades about 0.26 of its potential returns per unit of risk. Beta ETF SP is currently generating about 0.34 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Beta ETF SP
Performance |
| Timeline |
| Citigroup |
| Beta ETF SP |
Citigroup and Beta ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Beta ETF
The main advantage of trading using opposite Citigroup and Beta ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Beta ETF 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 Beta ETF will offset losses from the drop in Beta ETF's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Beta ETF vs. Asseco Business Solutions | Beta ETF vs. Detalion Games SA | Beta ETF vs. Asseco South Eastern | Beta ETF vs. CFI Holding SA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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