Correlation Between Citigroup and Salient Frontier
Can any of the company-specific risk be diversified away by investing in both Citigroup and Salient Frontier 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 Salient Frontier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Salient Frontier Strategy, you can compare the effects of market volatilities on Citigroup and Salient Frontier 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 Salient Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Salient Frontier.
Diversification Opportunities for Citigroup and Salient Frontier
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and SALIENT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Salient Frontier Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salient Frontier Strategy 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 Salient Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salient Frontier Strategy has no effect on the direction of Citigroup i.e., Citigroup and Salient Frontier go up and down completely randomly.
Pair Corralation between Citigroup and Salient Frontier
If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Salient Frontier Strategy
Performance |
| Timeline |
| Citigroup |
| Salient Frontier Strategy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Salient Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Salient Frontier
The main advantage of trading using opposite Citigroup and Salient Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Salient Frontier 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 Salient Frontier will offset losses from the drop in Salient Frontier's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Salient Frontier vs. Blackrock High Yield | Salient Frontier vs. Lord Abbett High | Salient Frontier vs. Prudential High Yield |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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