Correlation Between Citigroup and Janus Detroit
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Detroit 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 Detroit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Detroit Street, you can compare the effects of market volatilities on Citigroup and Janus Detroit 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 Detroit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Detroit.
Diversification Opportunities for Citigroup and Janus Detroit
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Janus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Detroit Street in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Detroit Street 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 Detroit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Detroit Street has no effect on the direction of Citigroup i.e., Citigroup and Janus Detroit go up and down completely randomly.
Pair Corralation between Citigroup and Janus Detroit
Taking into account the 90-day investment horizon Citigroup is expected to generate 22.24 times more return on investment than Janus Detroit. However, Citigroup is 22.24 times more volatile than Janus Detroit Street. It trades about 0.26 of its potential returns per unit of risk. Janus Detroit Street is currently generating about 0.35 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Janus Detroit Street
Performance |
| Timeline |
| Citigroup |
| Janus Detroit Street |
Citigroup and Janus Detroit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Detroit
The main advantage of trading using opposite Citigroup and Janus Detroit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Detroit 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 Detroit will offset losses from the drop in Janus Detroit's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Janus Detroit vs. Janus Detroit Street | Janus Detroit vs. VanEck ETF Trust | Janus Detroit vs. Janus Henderson Mortgage Backed | Janus Detroit vs. BlackRock AAA CLO |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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