Correlation Between Citigroup and Innovator Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Innovator Capital 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 Innovator Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Innovator Capital Management, you can compare the effects of market volatilities on Citigroup and Innovator Capital 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 Innovator Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Innovator Capital.
Diversification Opportunities for Citigroup and Innovator Capital
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Innovator is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Innovator Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovator Capital 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 Innovator Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovator Capital has no effect on the direction of Citigroup i.e., Citigroup and Innovator Capital go up and down completely randomly.
Pair Corralation between Citigroup and Innovator Capital
If you would invest 7,100 in Citigroup on November 4, 2024 and sell it today you would earn a total of 1,043 from holding Citigroup or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Citigroup vs. Innovator Capital Management
Performance |
| Timeline |
| Citigroup |
| Innovator Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Citigroup and Innovator Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Innovator Capital
The main advantage of trading using opposite Citigroup and Innovator Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Innovator Capital 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 Innovator Capital will offset losses from the drop in Innovator Capital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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