Correlation Between Citigroup and Voya International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya International 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 International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya International Index, you can compare the effects of market volatilities on Citigroup and Voya International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya International.
Diversification Opportunities for Citigroup and Voya International
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Voya is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya International Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya International 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 International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya International Index has no effect on the direction of Citigroup i.e., Citigroup and Voya International go up and down completely randomly.
Pair Corralation between Citigroup and Voya International
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.65 times more return on investment than Voya International. However, Citigroup is 2.65 times more volatile than Voya International Index. It trades about 0.23 of its potential returns per unit of risk. Voya International Index is currently generating about -0.18 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 729.00 from holding Citigroup or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Voya International Index
Performance |
| Timeline |
| Citigroup |
| Voya International Index |
Citigroup and Voya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya International
The main advantage of trading using opposite Citigroup and Voya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya International 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 International will offset losses from the drop in Voya International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Voya International vs. Nuveen Global Real | Voya International vs. Kinetics Global Fund | Voya International vs. Ms Global Fixed | Voya International vs. Commonwealth Global 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |