Correlation Between Citigroup and First Republic
Can any of the company-specific risk be diversified away by investing in both Citigroup and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and First Republic Bank, you can compare the effects of market volatilities on Citigroup and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and First Republic.
Diversification Opportunities for Citigroup and First Republic
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and First is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Citigroup i.e., Citigroup and First Republic go up and down completely randomly.
Pair Corralation between Citigroup and First Republic
If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 656.00 from holding Citigroup or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. First Republic Bank
Performance |
| Timeline |
| Citigroup |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and First Republic
The main advantage of trading using opposite Citigroup and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| First Republic vs. AMCON Distributing | First Republic vs. Radcom | First Republic vs. Marfrig Global Foods | First Republic vs. Kandi Technologies Group |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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