Correlation Between Citigroup and Janus Growth
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Growth 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 Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Growth And, you can compare the effects of market volatilities on Citigroup and Janus Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Growth.
Diversification Opportunities for Citigroup and Janus Growth
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Janus is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Growth And 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Growth And has no effect on the direction of Citigroup i.e., Citigroup and Janus Growth go up and down completely randomly.
Pair Corralation between Citigroup and Janus Growth
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.16 times more return on investment than Janus Growth. However, Citigroup is 2.16 times more volatile than Janus Growth And. It trades about 0.07 of its potential returns per unit of risk. Janus Growth And is currently generating about 0.08 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Janus Growth And
Performance |
| Timeline |
| Citigroup |
| Janus Growth And |
Citigroup and Janus Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Growth
The main advantage of trading using opposite Citigroup and Janus Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Growth 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 Growth will offset losses from the drop in Janus Growth's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Janus Growth vs. Vanguard Total Stock | Janus Growth vs. Vanguard 500 Index | Janus Growth vs. Vanguard Total Stock | Janus Growth vs. Vanguard Total Stock |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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