Correlation Between Citigroup and Virtus Low
Can any of the company-specific risk be diversified away by investing in both Citigroup and Virtus Low 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 Virtus Low into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Virtus Low Duration, you can compare the effects of market volatilities on Citigroup and Virtus Low 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 Virtus Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Virtus Low.
Diversification Opportunities for Citigroup and Virtus Low
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Virtus is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Virtus Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Low Duration 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 Virtus Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Low Duration has no effect on the direction of Citigroup i.e., Citigroup and Virtus Low go up and down completely randomly.
Pair Corralation between Citigroup and Virtus Low
Taking into account the 90-day investment horizon Citigroup is expected to generate 10.58 times more return on investment than Virtus Low. However, Citigroup is 10.58 times more volatile than Virtus Low Duration. It trades about 0.07 of its potential returns per unit of risk. Virtus Low Duration is currently generating about 0.16 per unit of risk. If you would invest 4,117 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,958 from holding Citigroup or generate 71.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Virtus Low Duration
Performance |
| Timeline |
| Citigroup |
| Virtus Low Duration |
Citigroup and Virtus Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Virtus Low
The main advantage of trading using opposite Citigroup and Virtus Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Virtus Low 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 Virtus Low will offset losses from the drop in Virtus Low's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Virtus Low vs. Virtus Multi Strategy Target | Virtus Low vs. Ridgeworth Seix High | Virtus Low vs. Ridgeworth Innovative Growth | Virtus Low vs. Ridgeworth Seix Porate |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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