Correlation Between Citigroup and Janus Growth
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Growth 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 Janus Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Growth And, you can compare the effects of market volatilities on Citigroup and Janus Growth 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 Janus Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Growth.
Diversification Opportunities for Citigroup and Janus Growth
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Janus is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Growth And 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 Janus Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Growth And has no effect on the direction of Citigroup i.e., Citigroup and Janus Growth go up and down completely randomly.
Pair Corralation between Citigroup and Janus Growth
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.83 times more return on investment than Janus Growth. However, Citigroup is 2.83 times more volatile than Janus Growth And. It trades about 0.29 of its potential returns per unit of risk. Janus Growth And is currently generating about 0.14 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Janus Growth And
Performance |
| Timeline |
| Citigroup |
| Janus Growth And |
Citigroup and Janus Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Growth
The main advantage of trading using opposite Citigroup and Janus Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Growth 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 Janus Growth will offset losses from the drop in Janus Growth's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Janus Growth vs. Janus Balanced Fund | Janus Growth vs. Janus Forty Fund | Janus Growth vs. Janus Enterprise Fund | Janus Growth vs. Janus Overseas 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |