Correlation Between Citigroup and Nuveen Dividend
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nuveen Dividend 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 Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nuveen Dividend Value, you can compare the effects of market volatilities on Citigroup and Nuveen Dividend 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 Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nuveen Dividend.
Diversification Opportunities for Citigroup and Nuveen Dividend
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Nuveen is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nuveen Dividend Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Dividend Value 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Dividend Value has no effect on the direction of Citigroup i.e., Citigroup and Nuveen Dividend go up and down completely randomly.
Pair Corralation between Citigroup and Nuveen Dividend
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.95 times more return on investment than Nuveen Dividend. However, Citigroup is 2.95 times more volatile than Nuveen Dividend Value. It trades about 0.27 of its potential returns per unit of risk. Nuveen Dividend Value is currently generating about 0.35 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nuveen Dividend Value
Performance |
| Timeline |
| Citigroup |
| Nuveen Dividend Value |
Citigroup and Nuveen Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nuveen Dividend
The main advantage of trading using opposite Citigroup and Nuveen Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nuveen Dividend 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 Dividend will offset losses from the drop in Nuveen Dividend's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nuveen Dividend vs. Nuveen Small Cap | Nuveen Dividend vs. Nuveen Real Estate | Nuveen Dividend vs. Nuveen Real Estate | Nuveen Dividend vs. Nuveen Preferred Securities |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |