Correlation Between Citigroup and Guggenheim Total
Can any of the company-specific risk be diversified away by investing in both Citigroup and Guggenheim Total 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 Guggenheim Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guggenheim Total Return, you can compare the effects of market volatilities on Citigroup and Guggenheim Total 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 Guggenheim Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guggenheim Total.
Diversification Opportunities for Citigroup and Guggenheim Total
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Guggenheim is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guggenheim Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Total Return 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 Guggenheim Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Total Return has no effect on the direction of Citigroup i.e., Citigroup and Guggenheim Total go up and down completely randomly.
Pair Corralation between Citigroup and Guggenheim Total
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.13 times more return on investment than Guggenheim Total. However, Citigroup is 6.13 times more volatile than Guggenheim Total Return. It trades about 0.07 of its potential returns per unit of risk. Guggenheim Total Return is currently generating about 0.11 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guggenheim Total Return
Performance |
| Timeline |
| Citigroup |
| Guggenheim Total Return |
Citigroup and Guggenheim Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guggenheim Total
The main advantage of trading using opposite Citigroup and Guggenheim Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guggenheim Total 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 Guggenheim Total will offset losses from the drop in Guggenheim Total's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guggenheim Total vs. Guggenheim Macro Opportunities | Guggenheim Total vs. Pimco Incme Fund | Guggenheim Total vs. Guggenheim Floating Rate | Guggenheim Total vs. Guggenheim Limited Duration |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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