Correlation Between Citigroup and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Citigroup and Harding Loevner 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 Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Harding Loevner Emerging, you can compare the effects of market volatilities on Citigroup and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Harding Loevner.
Diversification Opportunities for Citigroup and Harding Loevner
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Harding is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Harding Loevner Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Emerging 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Emerging has no effect on the direction of Citigroup i.e., Citigroup and Harding Loevner go up and down completely randomly.
Pair Corralation between Citigroup and Harding Loevner
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.87 times more return on investment than Harding Loevner. However, Citigroup is 1.87 times more volatile than Harding Loevner Emerging. It trades about 0.07 of its potential returns per unit of risk. Harding Loevner Emerging is currently generating about 0.02 per unit of risk. If you would invest 4,328 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,656 from holding Citigroup or generate 61.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Harding Loevner Emerging
Performance |
| Timeline |
| Citigroup |
| Harding Loevner Emerging |
Citigroup and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Harding Loevner
The main advantage of trading using opposite Citigroup and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Harding Loevner vs. Ssga International Stock | Harding Loevner vs. Schwab E Equity | Harding Loevner vs. Driehaus Emerging Markets | Harding Loevner vs. Columbia Emerging Markets |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| CEOs Directory Screen CEOs from public companies around the world |