Correlation Between Citigroup and Leuthold Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Leuthold Global 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 Leuthold Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Leuthold Global Fund, you can compare the effects of market volatilities on Citigroup and Leuthold Global 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 Leuthold Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Leuthold Global.
Diversification Opportunities for Citigroup and Leuthold Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Leuthold is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Leuthold Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leuthold Global 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 Leuthold Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leuthold Global has no effect on the direction of Citigroup i.e., Citigroup and Leuthold Global go up and down completely randomly.
Pair Corralation between Citigroup and Leuthold Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.38 times more return on investment than Leuthold Global. However, Citigroup is 1.38 times more volatile than Leuthold Global Fund. It trades about 0.25 of its potential returns per unit of risk. Leuthold Global Fund is currently generating about -0.17 per unit of risk. If you would invest 6,815 in Citigroup on September 15, 2024 and sell it today you would earn a total of 286.00 from holding Citigroup or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Leuthold Global Fund
Performance |
| Timeline |
| Citigroup |
| Leuthold Global |
Citigroup and Leuthold Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Leuthold Global
The main advantage of trading using opposite Citigroup and Leuthold Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Leuthold Global 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 Leuthold Global will offset losses from the drop in Leuthold Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Leuthold Global vs. Leuthold Select Industries | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Leuthold E Investment | Leuthold Global vs. Grizzly Short Fund |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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