Correlation Between Citigroup and Huber Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Huber 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 Huber Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Huber Capital Mid, you can compare the effects of market volatilities on Citigroup and Huber 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 Huber Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Huber Capital.
Diversification Opportunities for Citigroup and Huber Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Huber is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Huber Capital Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huber Capital Mid 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 Huber Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huber Capital Mid has no effect on the direction of Citigroup i.e., Citigroup and Huber Capital go up and down completely randomly.
Pair Corralation between Citigroup and Huber Capital
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.59 times more return on investment than Huber Capital. However, Citigroup is 1.59 times more volatile than Huber Capital Mid. It trades about 0.13 of its potential returns per unit of risk. Huber Capital Mid is currently generating about 0.13 per unit of risk. If you would invest 6,092 in Citigroup on September 3, 2024 and sell it today you would earn a total of 995.00 from holding Citigroup or generate 16.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Huber Capital Mid
Performance |
| Timeline |
| Citigroup |
| Huber Capital Mid |
Citigroup and Huber Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Huber Capital
The main advantage of trading using opposite Citigroup and Huber Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Huber 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 Huber Capital will offset losses from the drop in Huber Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Huber Capital vs. Janus Global Technology | Huber Capital vs. Pgim Jennison Technology | Huber Capital vs. Firsthand Technology Opportunities | Huber Capital vs. Hennessy Technology Fund |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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