Correlation Between Citigroup and Harbor Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Harbor Capital 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 Harbor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Harbor Capital Appreciation, you can compare the effects of market volatilities on Citigroup and Harbor Capital 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 Harbor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Harbor Capital.
Diversification Opportunities for Citigroup and Harbor Capital
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Harbor is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Harbor Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Capital Appre 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 Harbor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Capital Appre has no effect on the direction of Citigroup i.e., Citigroup and Harbor Capital go up and down completely randomly.
Pair Corralation between Citigroup and Harbor Capital
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Harbor Capital. In addition to that, Citigroup is 1.64 times more volatile than Harbor Capital Appreciation. It trades about -0.02 of its total potential returns per unit of risk. Harbor Capital Appreciation is currently generating about -0.02 per unit of volatility. If you would invest 10,966 in Harbor Capital Appreciation on November 27, 2024 and sell it today you would lose (53.00) from holding Harbor Capital Appreciation or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Harbor Capital Appreciation
Performance |
| Timeline |
| Citigroup |
| Harbor Capital Appre |
Citigroup and Harbor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Harbor Capital
The main advantage of trading using opposite Citigroup and Harbor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Harbor Capital 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 Harbor Capital will offset losses from the drop in Harbor Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Harbor Capital vs. Harbor Capital Appreciation | Harbor Capital vs. Harbor International Fund | Harbor Capital vs. Harbor Small Cap | Harbor Capital vs. Growth Fund Of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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