Correlation Between Citigroup and Hartford Growth
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hartford Growth 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 Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hartford Growth Allocation, you can compare the effects of market volatilities on Citigroup and Hartford Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hartford Growth.
Diversification Opportunities for Citigroup and Hartford Growth
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Hartford is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hartford Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth Allo 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth Allo has no effect on the direction of Citigroup i.e., Citigroup and Hartford Growth go up and down completely randomly.
Pair Corralation between Citigroup and Hartford Growth
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.6 times more return on investment than Hartford Growth. However, Citigroup is 3.6 times more volatile than Hartford Growth Allocation. It trades about 0.23 of its potential returns per unit of risk. Hartford Growth Allocation is currently generating about 0.12 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hartford Growth Allocation
Performance |
| Timeline |
| Citigroup |
| Hartford Growth Allo |
Citigroup and Hartford Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hartford Growth
The main advantage of trading using opposite Citigroup and Hartford Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hartford Growth 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 Growth will offset losses from the drop in Hartford Growth's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Hartford Growth vs. T Rowe Price | Hartford Growth vs. Pace Smallmedium Growth | Hartford Growth vs. Praxis Growth Index | Hartford Growth vs. Pioneer Fundamental Growth |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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