Correlation Between Citigroup and Guidestone Funds
Can any of the company-specific risk be diversified away by investing in both Citigroup and Guidestone Funds 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 Guidestone Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guidestone Funds Impact, you can compare the effects of market volatilities on Citigroup and Guidestone Funds 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 Guidestone Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guidestone Funds.
Diversification Opportunities for Citigroup and Guidestone Funds
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Guidestone is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guidestone Funds Impact in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidestone Funds Impact 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 Guidestone Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidestone Funds Impact has no effect on the direction of Citigroup i.e., Citigroup and Guidestone Funds go up and down completely randomly.
Pair Corralation between Citigroup and Guidestone Funds
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.08 times more return on investment than Guidestone Funds. However, Citigroup is 2.08 times more volatile than Guidestone Funds Impact. It trades about 0.19 of its potential returns per unit of risk. Guidestone Funds Impact is currently generating about 0.14 per unit of risk. If you would invest 6,991 in Citigroup on November 30, 2024 and sell it today you would earn a total of 1,002 from holding Citigroup or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guidestone Funds Impact
Performance |
| Timeline |
| Citigroup |
| Guidestone Funds Impact |
Citigroup and Guidestone Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guidestone Funds
The main advantage of trading using opposite Citigroup and Guidestone Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guidestone Funds 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 Guidestone Funds will offset losses from the drop in Guidestone Funds' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guidestone Funds vs. Virtus High Yield | Guidestone Funds vs. Simt High Yield | Guidestone Funds vs. Buffalo High Yield | Guidestone Funds vs. Payden High Income |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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