Correlation Between Citigroup and Fidelity Dividend
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity 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 Fidelity Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Dividend for, you can compare the effects of market volatilities on Citigroup and Fidelity 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 Fidelity Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Dividend.
Diversification Opportunities for Citigroup and Fidelity Dividend
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Fidelity is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Dividend for in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Dividend for 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 Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Dividend for has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Dividend go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Dividend
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.36 times more return on investment than Fidelity Dividend. However, Citigroup is 2.36 times more volatile than Fidelity Dividend for. It trades about 0.23 of its potential returns per unit of risk. Fidelity Dividend for is currently generating about 0.13 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fidelity Dividend for
Performance |
| Timeline |
| Citigroup |
| Fidelity Dividend for |
Citigroup and Fidelity Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Dividend
The main advantage of trading using opposite Citigroup and Fidelity Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity 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 Fidelity Dividend will offset losses from the drop in Fidelity Dividend's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Fidelity Dividend vs. BMO Europe High | Fidelity Dividend vs. BMO Covered Call | Fidelity Dividend vs. BMO Covered Call | Fidelity Dividend vs. BMO Europe High |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |