Correlation Between Citigroup and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Henderson 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 Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Henderson European, you can compare the effects of market volatilities on Citigroup and Janus Henderson 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 Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Henderson.
Diversification Opportunities for Citigroup and Janus Henderson
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Janus is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Henderson European in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson European 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 Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson European has no effect on the direction of Citigroup i.e., Citigroup and Janus Henderson go up and down completely randomly.
Pair Corralation between Citigroup and Janus Henderson
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.09 times more return on investment than Janus Henderson. However, Citigroup is 2.09 times more volatile than Janus Henderson European. It trades about 0.2 of its potential returns per unit of risk. Janus Henderson European is currently generating about -0.08 per unit of risk. If you would invest 5,683 in Citigroup on September 12, 2024 and sell it today you would earn a total of 1,513 from holding Citigroup or generate 26.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Janus Henderson European
Performance |
| Timeline |
| Citigroup |
| Janus Henderson European |
Citigroup and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Henderson
The main advantage of trading using opposite Citigroup and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Janus Henderson vs. Fidelity Advisor Emerging | Janus Henderson vs. Victory Rs International | Janus Henderson vs. Fidelity Advisor Diversified | Janus Henderson vs. Global Growth Fund |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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