Correlation Between Citigroup and Hawaiian Tax-free
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hawaiian Tax-free 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 Hawaiian Tax-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hawaiian Tax Free Trust, you can compare the effects of market volatilities on Citigroup and Hawaiian Tax-free 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 Hawaiian Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hawaiian Tax-free.
Diversification Opportunities for Citigroup and Hawaiian Tax-free
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Hawaiian is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hawaiian Tax Free Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawaiian Tax Free 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 Hawaiian Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawaiian Tax Free has no effect on the direction of Citigroup i.e., Citigroup and Hawaiian Tax-free go up and down completely randomly.
Pair Corralation between Citigroup and Hawaiian Tax-free
Taking into account the 90-day investment horizon Citigroup is expected to generate 8.87 times more return on investment than Hawaiian Tax-free. However, Citigroup is 8.87 times more volatile than Hawaiian Tax Free Trust. It trades about 0.08 of its potential returns per unit of risk. Hawaiian Tax Free Trust is currently generating about 0.04 per unit of risk. If you would invest 4,362 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,613 from holding Citigroup or generate 59.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hawaiian Tax Free Trust
Performance |
| Timeline |
| Citigroup |
| Hawaiian Tax Free |
Citigroup and Hawaiian Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hawaiian Tax-free
The main advantage of trading using opposite Citigroup and Hawaiian Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hawaiian Tax-free 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 Hawaiian Tax-free will offset losses from the drop in Hawaiian Tax-free's long position.The idea behind Citigroup and Hawaiian Tax Free Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hawaiian Tax-free vs. Aquila Three Peaks | Hawaiian Tax-free vs. Aquila Three Peaks | Hawaiian Tax-free vs. Aquila Three Peaks | Hawaiian Tax-free vs. Aquila Three Peaks |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |