Correlation Between Citigroup and Federated Government
Can any of the company-specific risk be diversified away by investing in both Citigroup and Federated Government 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 Federated Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Federated Government Income, you can compare the effects of market volatilities on Citigroup and Federated Government 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 Federated Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Federated Government.
Diversification Opportunities for Citigroup and Federated Government
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Federated is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Federated Government Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Government 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 Federated Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Government has no effect on the direction of Citigroup i.e., Citigroup and Federated Government go up and down completely randomly.
Pair Corralation between Citigroup and Federated Government
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.23 times more return on investment than Federated Government. However, Citigroup is 3.23 times more volatile than Federated Government Income. It trades about 0.25 of its potential returns per unit of risk. Federated Government Income is currently generating about 0.22 per unit of risk. If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 294.00 from holding Citigroup or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Federated Government Income
Performance |
| Timeline |
| Citigroup |
| Federated Government |
Citigroup and Federated Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Federated Government
The main advantage of trading using opposite Citigroup and Federated Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Federated Government 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 Federated Government will offset losses from the drop in Federated Government's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Federated Government vs. Ab Discovery Value | Federated Government vs. Pace Smallmedium Value | Federated Government vs. Victory Rs Partners | Federated Government vs. Queens Road Small |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |