Correlation Between Citigroup and Frost Low
Can any of the company-specific risk be diversified away by investing in both Citigroup and Frost Low 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 Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Frost Low Duration, you can compare the effects of market volatilities on Citigroup and Frost Low 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 Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Frost Low.
Diversification Opportunities for Citigroup and Frost Low
Excellent diversification
The 3 months correlation between Citigroup and Frost is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Frost Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frost Low Duration 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 Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frost Low Duration has no effect on the direction of Citigroup i.e., Citigroup and Frost Low go up and down completely randomly.
Pair Corralation between Citigroup and Frost Low
Taking into account the 90-day investment horizon Citigroup is expected to generate 14.4 times more return on investment than Frost Low. However, Citigroup is 14.4 times more volatile than Frost Low Duration. It trades about 0.32 of its potential returns per unit of risk. Frost Low Duration is currently generating about 0.04 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Frost Low Duration
Performance |
| Timeline |
| Citigroup |
| Frost Low Duration |
Citigroup and Frost Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Frost Low
The main advantage of trading using opposite Citigroup and Frost Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Frost Low 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 Low will offset losses from the drop in Frost Low's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Frost Low vs. Calvert Global Energy | Frost Low vs. Firsthand Alternative Energy | Frost Low vs. Hennessy Bp Energy | Frost Low vs. Adams Natural Resources |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |