Correlation Between Citigroup and Jaguar Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jaguar 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 Jaguar Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jaguar Global Growth, you can compare the effects of market volatilities on Citigroup and Jaguar 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 Jaguar Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jaguar Global.
Diversification Opportunities for Citigroup and Jaguar Global
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Jaguar is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jaguar Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jaguar Global Growth 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 Jaguar Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jaguar Global Growth has no effect on the direction of Citigroup i.e., Citigroup and Jaguar Global go up and down completely randomly.
Pair Corralation between Citigroup and Jaguar Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.56 times more return on investment than Jaguar Global. However, Citigroup is 2.56 times more volatile than Jaguar Global Growth. It trades about 0.07 of its potential returns per unit of risk. Jaguar Global Growth is currently generating about 0.05 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,846 from holding Citigroup or generate 66.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.91% |
| Values | Daily Returns |
Citigroup vs. Jaguar Global Growth
Performance |
| Timeline |
| Citigroup |
| Jaguar Global Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Jaguar Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jaguar Global
The main advantage of trading using opposite Citigroup and Jaguar Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jaguar 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 Jaguar Global will offset losses from the drop in Jaguar Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jaguar Global vs. Hennessy Capital Investment | Jaguar Global vs. AlphaTime Acquisition Corp | Jaguar Global vs. Manaris Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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