Correlation Between Citigroup and Jacob Funds
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jacob Funds 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 Jacob Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jacob Funds , you can compare the effects of market volatilities on Citigroup and Jacob Funds 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 Jacob Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jacob Funds.
Diversification Opportunities for Citigroup and Jacob Funds
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Jacob is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jacob Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Funds 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 Jacob Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Funds has no effect on the direction of Citigroup i.e., Citigroup and Jacob Funds go up and down completely randomly.
Pair Corralation between Citigroup and Jacob Funds
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.9 times more return on investment than Jacob Funds. However, Citigroup is 1.11 times less risky than Jacob Funds. It trades about 0.07 of its potential returns per unit of risk. Jacob Funds is currently generating about 0.01 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,846 from holding Citigroup or generate 66.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 56.97% |
| Values | Daily Returns |
Citigroup vs. Jacob Funds
Performance |
| Timeline |
| Citigroup |
| Jacob Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Jacob Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jacob Funds
The main advantage of trading using opposite Citigroup and Jacob Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jacob Funds 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 Jacob Funds will offset losses from the drop in Jacob Funds' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jacob Funds vs. Global Technology Portfolio | Jacob Funds vs. Blackrock Science Technology | Jacob Funds vs. Dreyfus Technology Growth | Jacob Funds vs. Pgim Jennison Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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