Correlation Between Citigroup and Frost Total
Can any of the company-specific risk be diversified away by investing in both Citigroup and Frost Total 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 Frost Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Frost Total Return, you can compare the effects of market volatilities on Citigroup and Frost Total 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 Frost Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Frost Total.
Diversification Opportunities for Citigroup and Frost Total
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and FROST is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Frost Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Total Return 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 Frost Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Total Return has no effect on the direction of Citigroup i.e., Citigroup and Frost Total go up and down completely randomly.
Pair Corralation between Citigroup and Frost Total
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.15 times more return on investment than Frost Total. However, Citigroup is 7.15 times more volatile than Frost Total Return. It trades about 0.26 of its potential returns per unit of risk. Frost Total Return is currently generating about 0.08 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 Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Frost Total Return
Performance |
| Timeline |
| Citigroup |
| Frost Total Return |
Citigroup and Frost Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Frost Total
The main advantage of trading using opposite Citigroup and Frost Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Frost Total 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 Frost Total will offset losses from the drop in Frost Total's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Frost Total vs. Baird Intermediate Bond | Frost Total vs. Kopernik Global All Cap | Frost Total vs. Invesco Real Estate | Frost Total vs. Oppenheimer Steelpath Mlp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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