Correlation Between Citigroup and Franklin Resources,
Can any of the company-specific risk be diversified away by investing in both Citigroup and Franklin Resources, 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 Franklin Resources, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Franklin Resources,, you can compare the effects of market volatilities on Citigroup and Franklin Resources, 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 Franklin Resources,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Franklin Resources,.
Diversification Opportunities for Citigroup and Franklin Resources,
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Franklin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Franklin Resources, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Resources, 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 Franklin Resources,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Resources, has no effect on the direction of Citigroup i.e., Citigroup and Franklin Resources, go up and down completely randomly.
Pair Corralation between Citigroup and Franklin Resources,
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.51 times more return on investment than Franklin Resources,. However, Citigroup is 1.95 times less risky than Franklin Resources,. It trades about 0.16 of its potential returns per unit of risk. Franklin Resources, is currently generating about 0.08 per unit of risk. If you would invest 6,209 in Citigroup on October 15, 2024 and sell it today you would earn a total of 1,068 from holding Citigroup or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.72% |
| Values | Daily Returns |
Citigroup vs. Franklin Resources,
Performance |
| Timeline |
| Citigroup |
| Franklin Resources, |
Citigroup and Franklin Resources, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Franklin Resources,
The main advantage of trading using opposite Citigroup and Franklin Resources, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Franklin Resources, 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 Franklin Resources, will offset losses from the drop in Franklin Resources,'s long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Franklin Resources, vs. Metalurgica Gerdau SA | Franklin Resources, vs. Broadcom | Franklin Resources, vs. Hormel Foods | Franklin Resources, vs. Alaska Air Group, |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |