Correlation Between Citigroup and 2023 ETF
Can any of the company-specific risk be diversified away by investing in both Citigroup and 2023 ETF 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 2023 ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The 2023 ETF, you can compare the effects of market volatilities on Citigroup and 2023 ETF 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 2023 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 2023 ETF.
Diversification Opportunities for Citigroup and 2023 ETF
Significant diversification
The 3 months correlation between Citigroup and 2023 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The 2023 ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2023 ETF 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 2023 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2023 ETF has no effect on the direction of Citigroup i.e., Citigroup and 2023 ETF go up and down completely randomly.
Pair Corralation between Citigroup and 2023 ETF
Taking into account the 90-day investment horizon Citigroup is expected to generate 358.32 times less return on investment than 2023 ETF. But when comparing it to its historical volatility, Citigroup is 127.26 times less risky than 2023 ETF. It trades about 0.07 of its potential returns per unit of risk. The 2023 ETF is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.00 in The 2023 ETF on August 29, 2024 and sell it today you would earn a total of 2,409 from holding The 2023 ETF or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.64% |
| Values | Daily Returns |
Citigroup vs. The 2023 ETF
Performance |
| Timeline |
| Citigroup |
| 2023 ETF |
Citigroup and 2023 ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 2023 ETF
The main advantage of trading using opposite Citigroup and 2023 ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 2023 ETF 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 2023 ETF will offset losses from the drop in 2023 ETF's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 2023 ETF vs. Davis Select International | 2023 ETF vs. Tidal ETF Trust | 2023 ETF vs. Principal Value ETF | 2023 ETF vs. WisdomTree Emerging Markets |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |