Correlation Between Citigroup and IShares JP
Can any of the company-specific risk be diversified away by investing in both Citigroup and IShares JP 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 IShares JP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and iShares JP Morgan, you can compare the effects of market volatilities on Citigroup and IShares JP 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 IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IShares JP.
Diversification Opportunities for Citigroup and IShares JP
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and IShares is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan 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 IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of Citigroup i.e., Citigroup and IShares JP go up and down completely randomly.
Pair Corralation between Citigroup and IShares JP
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.83 times more return on investment than IShares JP. However, Citigroup is 4.83 times more volatile than iShares JP Morgan. It trades about 0.21 of its potential returns per unit of risk. iShares JP Morgan is currently generating about 0.06 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% 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. iShares JP Morgan
Performance |
| Timeline |
| Citigroup |
| iShares JP Morgan |
Citigroup and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IShares JP
The main advantage of trading using opposite Citigroup and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IShares JP 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 IShares JP will offset losses from the drop in IShares JP's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| IShares JP vs. iShares Corp Bond | IShares JP vs. iShares Emerging Asia | IShares JP vs. iShares MSCI Global | IShares JP vs. iShares VII PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |