Correlation Between Citigroup and Janus Asia
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Asia 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 Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Asia Equity, you can compare the effects of market volatilities on Citigroup and Janus Asia 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 Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Asia.
Diversification Opportunities for Citigroup and Janus Asia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Janus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Asia Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Asia Equity 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 Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Asia Equity has no effect on the direction of Citigroup i.e., Citigroup and Janus Asia go up and down completely randomly.
Pair Corralation between Citigroup and Janus Asia
If you would invest 5,968 in Citigroup on December 4, 2024 and sell it today you would earn a total of 1,749 from holding Citigroup or generate 29.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Janus Asia Equity
Performance |
| Timeline |
| Citigroup |
| Janus Asia Equity |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Citigroup and Janus Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Asia
The main advantage of trading using opposite Citigroup and Janus Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Asia 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 Asia will offset losses from the drop in Janus Asia's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Janus Asia vs. Nexpoint Real Estate | Janus Asia vs. Vanguard Reit Index | Janus Asia vs. Texton Property | Janus Asia vs. Global Real Estate |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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