Correlation Between Citigroup and Fa529 Tl
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fa529 Tl 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 Fa529 Tl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fa529 Tl Pt, you can compare the effects of market volatilities on Citigroup and Fa529 Tl 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 Fa529 Tl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fa529 Tl.
Diversification Opportunities for Citigroup and Fa529 Tl
Pay attention - limited upside
The 3 months correlation between Citigroup and Fa529 is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fa529 Tl Pt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fa529 Tl Pt 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 Fa529 Tl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fa529 Tl Pt has no effect on the direction of Citigroup i.e., Citigroup and Fa529 Tl go up and down completely randomly.
Pair Corralation between Citigroup and Fa529 Tl
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.29 times more return on investment than Fa529 Tl. However, Citigroup is 7.29 times more volatile than Fa529 Tl Pt. It trades about 0.24 of its potential returns per unit of risk. Fa529 Tl Pt is currently generating about -0.08 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fa529 Tl Pt
Performance |
| Timeline |
| Citigroup |
| Fa529 Tl Pt |
Citigroup and Fa529 Tl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fa529 Tl
The main advantage of trading using opposite Citigroup and Fa529 Tl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fa529 Tl 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 Fa529 Tl will offset losses from the drop in Fa529 Tl's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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