Correlation Between Citigroup and ISHS MSCI
Can any of the company-specific risk be diversified away by investing in both Citigroup and ISHS MSCI 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 ISHS MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and ISHS MSCI EUROP, you can compare the effects of market volatilities on Citigroup and ISHS MSCI 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 ISHS MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ISHS MSCI.
Diversification Opportunities for Citigroup and ISHS MSCI
Pay attention - limited upside
The 3 months correlation between Citigroup and ISHS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ISHS MSCI EUROP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISHS MSCI EUROP 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 ISHS MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISHS MSCI EUROP has no effect on the direction of Citigroup i.e., Citigroup and ISHS MSCI go up and down completely randomly.
Pair Corralation between Citigroup and ISHS MSCI
If you would invest 6,900 in Citigroup on September 19, 2024 and sell it today you would earn a total of 212.00 from holding Citigroup or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. ISHS MSCI EUROP
Performance |
| Timeline |
| Citigroup |
| ISHS MSCI EUROP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and ISHS MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ISHS MSCI
The main advantage of trading using opposite Citigroup and ISHS MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ISHS MSCI 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 ISHS MSCI will offset losses from the drop in ISHS MSCI's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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