Correlation Between Citigroup and Hartford Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hartford Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The Hartford Global, you can compare the effects of market volatilities on Citigroup and Hartford Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hartford Global.
Diversification Opportunities for Citigroup and Hartford Global
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Hartford is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Hartford Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Global 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Global has no effect on the direction of Citigroup i.e., Citigroup and Hartford Global go up and down completely randomly.
Pair Corralation between Citigroup and Hartford Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.11 times more return on investment than Hartford Global. However, Citigroup is 2.11 times more volatile than The Hartford Global. It trades about 0.08 of its potential returns per unit of risk. The Hartford Global is currently generating about 0.04 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. The Hartford Global
Performance |
| Timeline |
| Citigroup |
| Hartford Global |
Citigroup and Hartford Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hartford Global
The main advantage of trading using opposite Citigroup and Hartford Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hartford Global 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 Global will offset losses from the drop in Hartford Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hartford Global vs. Vy T Rowe | Hartford Global vs. Eaton Vance Atlanta | Hartford Global vs. Blackrock Health Sciences | Hartford Global vs. Blackrock Health Sciences |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |