Correlation Between Citigroup and Hartford Schroders
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hartford Schroders 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 Hartford Schroders into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hartford Schroders International, you can compare the effects of market volatilities on Citigroup and Hartford Schroders 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 Hartford Schroders. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hartford Schroders.
Diversification Opportunities for Citigroup and Hartford Schroders
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Hartford is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hartford Schroders Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Schroders 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 Hartford Schroders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Schroders has no effect on the direction of Citigroup i.e., Citigroup and Hartford Schroders go up and down completely randomly.
Pair Corralation between Citigroup and Hartford Schroders
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.28 times more return on investment than Hartford Schroders. However, Citigroup is 2.28 times more volatile than Hartford Schroders International. It trades about 0.07 of its potential returns per unit of risk. Hartford Schroders International is currently generating about 0.02 per unit of risk. If you would invest 6,008 in Citigroup on September 4, 2024 and sell it today you would earn a total of 1,131 from holding Citigroup or generate 18.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hartford Schroders Internation
Performance |
| Timeline |
| Citigroup |
| Hartford Schroders |
Citigroup and Hartford Schroders Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hartford Schroders
The main advantage of trading using opposite Citigroup and Hartford Schroders positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hartford Schroders 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 Hartford Schroders will offset losses from the drop in Hartford Schroders' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hartford Schroders vs. Pioneer High Yield | Hartford Schroders vs. Morningstar Aggressive Growth | Hartford Schroders vs. Ab Global Risk | Hartford Schroders vs. Western Asset High |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |