Correlation Between Citigroup and Fidelity International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity International 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 International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity International Enhanced, you can compare the effects of market volatilities on Citigroup and Fidelity International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity International.
Diversification Opportunities for Citigroup and Fidelity International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Fidelity is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity International Enhance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity International has no effect on the direction of Citigroup i.e., Citigroup and Fidelity International go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity International
If you would invest 4,642 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,497 from holding Citigroup or generate 53.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Citigroup vs. Fidelity International Enhance
Performance |
| Timeline |
| Citigroup |
| Fidelity International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Fidelity International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity International
The main advantage of trading using opposite Citigroup and Fidelity International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity International 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 International will offset losses from the drop in Fidelity International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fidelity International vs. Fidelity International Value | Fidelity International vs. Fidelity Total International |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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