Correlation Between Citigroup and Integrity Growth
Can any of the company-specific risk be diversified away by investing in both Citigroup and Integrity 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 Integrity Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Integrity Growth Income, you can compare the effects of market volatilities on Citigroup and Integrity 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 Integrity Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Integrity Growth.
Diversification Opportunities for Citigroup and Integrity Growth
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Integrity is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Integrity Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrity Growth Income 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 Integrity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrity Growth Income has no effect on the direction of Citigroup i.e., Citigroup and Integrity Growth go up and down completely randomly.
Pair Corralation between Citigroup and Integrity Growth
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.09 times more return on investment than Integrity Growth. However, Citigroup is 2.09 times more volatile than Integrity Growth Income. It trades about 0.07 of its potential returns per unit of risk. Integrity Growth Income is currently generating about 0.1 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Integrity Growth Income
Performance |
| Timeline |
| Citigroup |
| Integrity Growth Income |
Citigroup and Integrity Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Integrity Growth
The main advantage of trading using opposite Citigroup and Integrity Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Integrity 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 Integrity Growth will offset losses from the drop in Integrity Growth's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Viking Tax Free Fund | Integrity Growth vs. Nebraska Municipal Fund | Integrity Growth vs. Nebraska Municipal 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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