Correlation Between Citigroup and Voya Limited
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya Limited 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 Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya Limited Maturity, you can compare the effects of market volatilities on Citigroup and Voya Limited 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 Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya Limited.
Diversification Opportunities for Citigroup and Voya Limited
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Voya is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya Limited Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Limited Maturity 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 Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Limited Maturity has no effect on the direction of Citigroup i.e., Citigroup and Voya Limited go up and down completely randomly.
Pair Corralation between Citigroup and Voya Limited
Taking into account the 90-day investment horizon Citigroup is expected to generate 11.36 times more return on investment than Voya Limited. However, Citigroup is 11.36 times more volatile than Voya Limited Maturity. It trades about 0.12 of its potential returns per unit of risk. Voya Limited Maturity is currently generating about 0.15 per unit of risk. If you would invest 4,445 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,539 from holding Citigroup or generate 57.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Voya Limited Maturity
Performance |
| Timeline |
| Citigroup |
| Voya Limited Maturity |
Citigroup and Voya Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya Limited
The main advantage of trading using opposite Citigroup and Voya Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya Limited 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 Limited will offset losses from the drop in Voya Limited's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Voya Limited vs. Voya Bond Index | Voya Limited vs. Voya Bond Index | Voya Limited vs. Voya Bond Index | Voya Limited vs. Voya Emerging Markets |
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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