Correlation Between Citigroup and Fidelity Large
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Large 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 Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Large Cap, you can compare the effects of market volatilities on Citigroup and Fidelity Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Large.
Diversification Opportunities for Citigroup and Fidelity Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Fidelity is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Large Cap has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Large go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Large
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.26 times more return on investment than Fidelity Large. However, Citigroup is 2.26 times more volatile than Fidelity Large Cap. It trades about 0.07 of its potential returns per unit of risk. Fidelity Large Cap is currently generating about 0.11 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fidelity Large Cap
Performance |
| Timeline |
| Citigroup |
| Fidelity Large Cap |
Citigroup and Fidelity Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Large
The main advantage of trading using opposite Citigroup and Fidelity Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Large 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 Large will offset losses from the drop in Fidelity Large's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fidelity Large vs. Fidelity Focused Stock | Fidelity Large vs. Fidelity Stock Selector | Fidelity Large vs. Fidelity Trend Fund | Fidelity Large vs. Fidelity Advisor Value |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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