Correlation Between Citigroup and Beta ETF

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citigroup and Beta ETF 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 Beta ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Beta ETF WIG20Short, 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

0.59
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Citigroup and Beta is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Beta ETF WIG20Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta ETF WIG20Short 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 WIG20Short 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 1.21 times more return on investment than Beta ETF. However, Citigroup is 1.21 times more volatile than Beta ETF WIG20Short. It trades about 0.07 of its potential returns per unit of risk. Beta ETF WIG20Short is currently generating about -0.02 per unit of risk. If you would invest  4,206  in Citigroup on August 25, 2024 and sell it today you would earn a total of  2,778  from holding Citigroup or generate 66.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy99.8%
ValuesDaily Returns

Citigroup  vs.  Beta ETF WIG20Short

 Performance 
       Timeline  
Citigroup 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.
Beta ETF WIG20Short 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Beta ETF WIG20Short are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Beta ETF may actually be approaching a critical reversion point that can send shares even higher in December 2024.

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. Toronto Dominion Bank
Citigroup vs. Nu Holdings
Citigroup vs. HSBC Holdings PLC
Citigroup vs. Bank of Montreal
The idea behind Citigroup and Beta ETF WIG20Short pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Beta ETF vs. Beta mWIG40TR Portfelowy
Beta ETF vs. Beta ETF Nasdaq 100
Beta ETF vs. Beta ETF Nasdaq 100
Beta ETF vs. Beta WIG20TR Portfelowy
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

Other Complementary Tools

Bonds Directory
Find actively traded corporate debentures issued by US companies
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Commodity Directory
Find actively traded commodities issued by global exchanges
Equity Valuation
Check real value of public entities based on technical and fundamental data
Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY