Correlation Between Citigroup and Van Eck
Can any of the company-specific risk be diversified away by investing in both Citigroup and Van Eck 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 Van Eck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Van Eck, you can compare the effects of market volatilities on Citigroup and Van Eck 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 Van Eck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Van Eck.
Diversification Opportunities for Citigroup and Van Eck
Pay attention - limited upside
The 3 months correlation between Citigroup and Van is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Van Eck in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Eck 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 Van Eck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Eck has no effect on the direction of Citigroup i.e., Citigroup and Van Eck go up and down completely randomly.
Pair Corralation between Citigroup and Van Eck
If you would invest 6,166 in Citigroup on September 3, 2024 and sell it today you would earn a total of 921.00 from holding Citigroup or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Van Eck
Performance |
| Timeline |
| Citigroup |
| Van Eck |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Van Eck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Van Eck
The main advantage of trading using opposite Citigroup and Van Eck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Van Eck 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 Van Eck will offset losses from the drop in Van Eck's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Van Eck vs. Vanguard Total Stock | Van Eck vs. SPDR SP 500 | Van Eck vs. Vanguard Total Bond | Van Eck vs. Vanguard Value Index |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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