Correlation Between Citigroup and Janus Flexible
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Flexible 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 Flexible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Flexible Bond, you can compare the effects of market volatilities on Citigroup and Janus Flexible 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 Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Flexible.
Diversification Opportunities for Citigroup and Janus Flexible
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Janus is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Flexible Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Flexible Bond 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 Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Flexible Bond has no effect on the direction of Citigroup i.e., Citigroup and Janus Flexible go up and down completely randomly.
Pair Corralation between Citigroup and Janus Flexible
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.85 times more return on investment than Janus Flexible. However, Citigroup is 4.85 times more volatile than Janus Flexible Bond. It trades about 0.09 of its potential returns per unit of risk. Janus Flexible Bond is currently generating about 0.06 per unit of risk. If you would invest 5,422 in Citigroup on August 25, 2024 and sell it today you would earn a total of 1,562 from holding Citigroup or generate 28.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Janus Flexible Bond
Performance |
| Timeline |
| Citigroup |
| Janus Flexible Bond |
Citigroup and Janus Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Flexible
The main advantage of trading using opposite Citigroup and Janus Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Flexible 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 Flexible will offset losses from the drop in Janus Flexible's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Janus Flexible vs. Janus Short Term Bond | Janus Flexible vs. Janus High Yield Fund | Janus Flexible vs. Janus Balanced Fund | Janus Flexible vs. Janus Growth And |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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