Correlation Between Citigroup and Voya Us
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya Us 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 Voya Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya Bond Index, you can compare the effects of market volatilities on Citigroup and Voya Us 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 Voya Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya Us.
Diversification Opportunities for Citigroup and Voya Us
Pay attention - limited upside
The 3 months correlation between Citigroup and VOYA is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya Bond Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Bond Index 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 Voya Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Bond Index has no effect on the direction of Citigroup i.e., Citigroup and Voya Us go up and down completely randomly.
Pair Corralation between Citigroup and Voya Us
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.43 times more return on investment than Voya Us. However, Citigroup is 5.43 times more volatile than Voya Bond Index. It trades about 0.2 of its potential returns per unit of risk. Voya Bond Index is currently generating about 0.04 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Voya Bond Index
Performance |
| Timeline |
| Citigroup |
| Voya Bond Index |
Citigroup and Voya Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya Us
The main advantage of trading using opposite Citigroup and Voya Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya Us 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 Voya Us will offset losses from the drop in Voya Us' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Voya Us vs. Ab Small Cap | Voya Us vs. Lord Abbett Small | Voya Us vs. Victory Rs Partners | Voya Us vs. Hennessy Nerstone Mid |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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