Correlation Between Citigroup and Fidelity Climate
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Climate 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 Fidelity Climate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Climate Action, you can compare the effects of market volatilities on Citigroup and Fidelity Climate 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 Fidelity Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Climate.
Diversification Opportunities for Citigroup and Fidelity Climate
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Fidelity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Climate Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Climate Action 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 Fidelity Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Climate Action has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Climate go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Climate
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.73 times more return on investment than Fidelity Climate. However, Citigroup is 2.73 times more volatile than Fidelity Climate Action. It trades about 0.33 of its potential returns per unit of risk. Fidelity Climate Action is currently generating about 0.31 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Fidelity Climate Action
Performance |
| Timeline |
| Citigroup |
| Fidelity Climate Action |
Citigroup and Fidelity Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Climate
The main advantage of trading using opposite Citigroup and Fidelity Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Climate 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 Fidelity Climate will offset losses from the drop in Fidelity Climate's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fidelity Climate vs. Fidelity Pacific Basin | Fidelity Climate vs. Fidelity Europe Fund | Fidelity Climate vs. Fidelity International Capital | Fidelity Climate vs. Fidelity Overseas Fund |
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 CEOs Directory module to screen CEOs from public companies around the world.
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