Correlation Between Citigroup and Fidelity Value
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Value 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 Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Value ETF, you can compare the effects of market volatilities on Citigroup and Fidelity Value 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 Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Value.
Diversification Opportunities for Citigroup and Fidelity Value
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Fidelity is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Value ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Value ETF 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 Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Value ETF has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Value go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Value
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.99 times more return on investment than Fidelity Value. However, Citigroup is 1.99 times more volatile than Fidelity Value ETF. It trades about 0.09 of its potential returns per unit of risk. Fidelity Value ETF is currently generating about 0.15 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Fidelity Value ETF
Performance |
| Timeline |
| Citigroup |
| Fidelity Value ETF |
Citigroup and Fidelity Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Value
The main advantage of trading using opposite Citigroup and Fidelity Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Value 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 Value will offset losses from the drop in Fidelity Value's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fidelity Value vs. Fidelity Canadian Value | Fidelity Value vs. Fidelity High Quality | Fidelity Value vs. Fidelity International Value | Fidelity Value vs. Fidelity Canadian 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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