Correlation Between Citigroup and Janus Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Janus Global 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 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Janus Global Allocation, you can compare the effects of market volatilities on Citigroup and Janus Global 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Janus Global.
Diversification Opportunities for Citigroup and Janus Global
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Janus is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Janus Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Global Allocation 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Global Allocation has no effect on the direction of Citigroup i.e., Citigroup and Janus Global go up and down completely randomly.
Pair Corralation between Citigroup and Janus Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.03 times more return on investment than Janus Global. However, Citigroup is 3.03 times more volatile than Janus Global Allocation. It trades about 0.45 of its potential returns per unit of risk. Janus Global Allocation is currently generating about 0.26 per unit of risk. If you would invest 6,994 in Citigroup on November 2, 2024 and sell it today you would earn a total of 1,192 from holding Citigroup or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Citigroup vs. Janus Global Allocation
Performance |
| Timeline |
| Citigroup |
| Janus Global Allocation |
Citigroup and Janus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Janus Global
The main advantage of trading using opposite Citigroup and Janus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Janus Global 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 Global will offset losses from the drop in Janus Global's long position.| Citigroup vs. Royal Bank of | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Janus Global vs. Vy Baron Growth | Janus Global vs. L Abbett Growth | Janus Global vs. Growth Allocation Fund | Janus Global vs. Rational Defensive Growth |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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