Correlation Between Citigroup and Nuveen Michigan
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nuveen Michigan 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 Nuveen Michigan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nuveen Michigan Municipal, you can compare the effects of market volatilities on Citigroup and Nuveen Michigan 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 Nuveen Michigan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nuveen Michigan.
Diversification Opportunities for Citigroup and Nuveen Michigan
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Nuveen is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nuveen Michigan Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Michigan Municipal 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 Nuveen Michigan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Michigan Municipal has no effect on the direction of Citigroup i.e., Citigroup and Nuveen Michigan go up and down completely randomly.
Pair Corralation between Citigroup and Nuveen Michigan
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.64 times more return on investment than Nuveen Michigan. However, Citigroup is 6.64 times more volatile than Nuveen Michigan Municipal. It trades about 0.07 of its potential returns per unit of risk. Nuveen Michigan Municipal is currently generating about 0.02 per unit of risk. If you would invest 4,746 in Citigroup on November 2, 2024 and sell it today you would earn a total of 3,397 from holding Citigroup or generate 71.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nuveen Michigan Municipal
Performance |
| Timeline |
| Citigroup |
| Nuveen Michigan Municipal |
Citigroup and Nuveen Michigan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nuveen Michigan
The main advantage of trading using opposite Citigroup and Nuveen Michigan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nuveen Michigan 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 Nuveen Michigan will offset losses from the drop in Nuveen Michigan's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nuveen Michigan vs. Mainstay Moderate Etf | Nuveen Michigan vs. Voya Retirement Servative | Nuveen Michigan vs. Dimensional Retirement Income | Nuveen Michigan vs. Jp Morgan Smartretirement |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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