Correlation Between Citigroup and Fidelity Sai
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Sai 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 Sai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Sai Quality, you can compare the effects of market volatilities on Citigroup and Fidelity Sai 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 Sai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Sai.
Diversification Opportunities for Citigroup and Fidelity Sai
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Fidelity is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Sai Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sai Quality 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 Sai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sai Quality has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Sai go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Sai
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.34 times more return on investment than Fidelity Sai. However, Citigroup is 2.34 times more volatile than Fidelity Sai Quality. It trades about 0.25 of its potential returns per unit of risk. Fidelity Sai Quality is currently generating about 0.11 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Fidelity Sai Quality
Performance |
| Timeline |
| Citigroup |
| Fidelity Sai Quality |
Citigroup and Fidelity Sai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Sai
The main advantage of trading using opposite Citigroup and Fidelity Sai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Sai 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 Sai will offset losses from the drop in Fidelity Sai's long position.The idea behind Citigroup and Fidelity Sai Quality pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fidelity Sai vs. Lord Abbett Growth | Fidelity Sai vs. Fidelity Advisor Growth | Fidelity Sai vs. Aquagold International | Fidelity Sai vs. Morningstar Unconstrained Allocation |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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