Correlation Between Citigroup and Voya Target
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya Target 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 Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya Target In Retirement, you can compare the effects of market volatilities on Citigroup and Voya Target 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 Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya Target.
Diversification Opportunities for Citigroup and Voya Target
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Voya is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya Target In Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Target In 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 Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Target In has no effect on the direction of Citigroup i.e., Citigroup and Voya Target go up and down completely randomly.
Pair Corralation between Citigroup and Voya Target
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.3 times more return on investment than Voya Target. However, Citigroup is 4.3 times more volatile than Voya Target In Retirement. It trades about 0.13 of its potential returns per unit of risk. Voya Target In Retirement is currently generating about 0.12 per unit of risk. If you would invest 3,863 in Citigroup on September 3, 2024 and sell it today you would earn a total of 3,276 from holding Citigroup or generate 84.8% 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 Target In Retirement
Performance |
| Timeline |
| Citigroup |
| Voya Target In |
Citigroup and Voya Target Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya Target
The main advantage of trading using opposite Citigroup and Voya Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya Target 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 Target will offset losses from the drop in Voya Target's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Voya Target vs. Vanguard Target Retirement | Voya Target vs. Blackrock Lifepath Idx | Voya Target vs. Jpmorgan Smartretirement Income | Voya Target vs. Jpmorgan Smartretirement Income |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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