Correlation Between Citigroup and BetaShares Geared
Can any of the company-specific risk be diversified away by investing in both Citigroup and BetaShares Geared 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 BetaShares Geared into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BetaShares Geared Equity, you can compare the effects of market volatilities on Citigroup and BetaShares Geared 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 BetaShares Geared. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BetaShares Geared.
Diversification Opportunities for Citigroup and BetaShares Geared
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and BetaShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BetaShares Geared Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BetaShares Geared Equity 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 BetaShares Geared. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BetaShares Geared Equity has no effect on the direction of Citigroup i.e., Citigroup and BetaShares Geared go up and down completely randomly.
Pair Corralation between Citigroup and BetaShares Geared
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.09 times more return on investment than BetaShares Geared. However, Citigroup is 1.09 times more volatile than BetaShares Geared Equity. It trades about 0.21 of its potential returns per unit of risk. BetaShares Geared Equity is currently generating about 0.13 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BetaShares Geared Equity
Performance |
| Timeline |
| Citigroup |
| BetaShares Geared Equity |
Citigroup and BetaShares Geared Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BetaShares Geared
The main advantage of trading using opposite Citigroup and BetaShares Geared positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BetaShares Geared 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 BetaShares Geared will offset losses from the drop in BetaShares Geared's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BetaShares Geared vs. Betashares Asia Technology | BetaShares Geared vs. CD Private Equity | BetaShares Geared vs. BetaShares Australia 200 | BetaShares Geared vs. Australian High Interest |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |