Correlation Between Citigroup and IShares SP
Can any of the company-specific risk be diversified away by investing in both Citigroup and IShares SP 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 IShares SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and iShares SP GSCI, you can compare the effects of market volatilities on Citigroup and IShares SP 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 IShares SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IShares SP.
Diversification Opportunities for Citigroup and IShares SP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and IShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and iShares SP GSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares SP GSCI 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 IShares SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares SP GSCI has no effect on the direction of Citigroup i.e., Citigroup and IShares SP go up and down completely randomly.
Pair Corralation between Citigroup and IShares SP
If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citigroup vs. iShares SP GSCI
Performance |
| Timeline |
| Citigroup |
| iShares SP GSCI |
Citigroup and IShares SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IShares SP
The main advantage of trading using opposite Citigroup and IShares SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IShares SP 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 IShares SP will offset losses from the drop in IShares SP's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust | IShares SP vs. iShares Trust |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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