Correlation Between Citigroup and Guggenheim Risk
Can any of the company-specific risk be diversified away by investing in both Citigroup and Guggenheim Risk 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 Guggenheim Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guggenheim Risk Managed, you can compare the effects of market volatilities on Citigroup and Guggenheim Risk 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 Guggenheim Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guggenheim Risk.
Diversification Opportunities for Citigroup and Guggenheim Risk
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Guggenheim is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guggenheim Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Risk Managed 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 Guggenheim Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Risk Managed has no effect on the direction of Citigroup i.e., Citigroup and Guggenheim Risk go up and down completely randomly.
Pair Corralation between Citigroup and Guggenheim Risk
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.67 times more return on investment than Guggenheim Risk. However, Citigroup is 2.67 times more volatile than Guggenheim Risk Managed. It trades about 0.21 of its potential returns per unit of risk. Guggenheim Risk Managed is currently generating about -0.02 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guggenheim Risk Managed
Performance |
| Timeline |
| Citigroup |
| Guggenheim Risk Managed |
Citigroup and Guggenheim Risk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guggenheim Risk
The main advantage of trading using opposite Citigroup and Guggenheim Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guggenheim Risk 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 Guggenheim Risk will offset losses from the drop in Guggenheim Risk's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guggenheim Risk vs. Guggenheim Risk Managed | Guggenheim Risk vs. Real Estate Fund | Guggenheim Risk vs. Cohen And Steers | Guggenheim Risk vs. William Blair Emerging |
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.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |