Correlation Between Citigroup and Fidelity Sustainable
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Sustainable 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 Sustainable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Sustainable Multi Asset, you can compare the effects of market volatilities on Citigroup and Fidelity Sustainable 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 Sustainable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Sustainable.
Diversification Opportunities for Citigroup and Fidelity Sustainable
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Fidelity is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Sustainable Multi Ass in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Sustainable 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 Sustainable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Sustainable has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Sustainable go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Sustainable
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Fidelity Sustainable. In addition to that, Citigroup is 3.27 times more volatile than Fidelity Sustainable Multi Asset. It trades about -0.02 of its total potential returns per unit of risk. Fidelity Sustainable Multi Asset is currently generating about 0.11 per unit of volatility. If you would invest 1,050 in Fidelity Sustainable Multi Asset on November 27, 2024 and sell it today you would earn a total of 11.00 from holding Fidelity Sustainable Multi Asset or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fidelity Sustainable Multi Ass
Performance |
| Timeline |
| Citigroup |
| Fidelity Sustainable |
Citigroup and Fidelity Sustainable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Sustainable
The main advantage of trading using opposite Citigroup and Fidelity Sustainable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Sustainable 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 Sustainable will offset losses from the drop in Fidelity Sustainable's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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