Correlation Between Citigroup and IA Clarington
Can any of the company-specific risk be diversified away by investing in both Citigroup and IA Clarington 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 IA Clarington into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and IA Clarington Strategic, you can compare the effects of market volatilities on Citigroup and IA Clarington 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 IA Clarington. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IA Clarington.
Diversification Opportunities for Citigroup and IA Clarington
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and ISIF is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and IA Clarington Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IA Clarington Strategic 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 IA Clarington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IA Clarington Strategic has no effect on the direction of Citigroup i.e., Citigroup and IA Clarington go up and down completely randomly.
Pair Corralation between Citigroup and IA Clarington
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.99 times more return on investment than IA Clarington. However, Citigroup is 2.99 times more volatile than IA Clarington Strategic. It trades about 0.1 of its potential returns per unit of risk. IA Clarington Strategic is currently generating about 0.09 per unit of risk. If you would invest 4,959 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,025 from holding Citigroup or generate 40.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. IA Clarington Strategic
Performance |
| Timeline |
| Citigroup |
| IA Clarington Strategic |
Citigroup and IA Clarington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IA Clarington
The main advantage of trading using opposite Citigroup and IA Clarington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IA Clarington 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 IA Clarington will offset losses from the drop in IA Clarington's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| IA Clarington vs. Global Atomic Corp | IA Clarington vs. enCore Energy Corp | IA Clarington vs. Fission Uranium Corp | IA Clarington vs. NexGen Energy |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |