Correlation Between Citigroup and Franklin North
Can any of the company-specific risk be diversified away by investing in both Citigroup and Franklin North 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 Franklin North into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Franklin North Carolina, you can compare the effects of market volatilities on Citigroup and Franklin North 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 Franklin North. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Franklin North.
Diversification Opportunities for Citigroup and Franklin North
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Franklin is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Franklin North Carolina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin North Carolina 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 Franklin North. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin North Carolina has no effect on the direction of Citigroup i.e., Citigroup and Franklin North go up and down completely randomly.
Pair Corralation between Citigroup and Franklin North
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.47 times more return on investment than Franklin North. However, Citigroup is 6.47 times more volatile than Franklin North Carolina. It trades about 0.29 of its potential returns per unit of risk. Franklin North Carolina is currently generating about 0.11 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Franklin North Carolina
Performance |
| Timeline |
| Citigroup |
| Franklin North Carolina |
Citigroup and Franklin North Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Franklin North
The main advantage of trading using opposite Citigroup and Franklin North positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Franklin North 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 Franklin North will offset losses from the drop in Franklin North's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Franklin North vs. Franklin Mutual Beacon | Franklin North vs. Templeton Developing Markets | Franklin North vs. Franklin Mutual Global | Franklin North vs. Franklin Mutual Global |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |