Correlation Between Citigroup and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and Jupiter Fund 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 Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Jupiter Fund Management, you can compare the effects of market volatilities on Citigroup and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jupiter Fund.
Diversification Opportunities for Citigroup and Jupiter Fund
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Jupiter is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Citigroup i.e., Citigroup and Jupiter Fund go up and down completely randomly.
Pair Corralation between Citigroup and Jupiter Fund
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.6 times more return on investment than Jupiter Fund. However, Citigroup is 1.6 times more volatile than Jupiter Fund Management. It trades about 0.25 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.08 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Jupiter Fund Management
Performance |
| Timeline |
| Citigroup |
| Jupiter Fund Management |
Citigroup and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jupiter Fund
The main advantage of trading using opposite Citigroup and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Jupiter Fund vs. Mindflair Plc | Jupiter Fund vs. Empire Metals Limited | Jupiter Fund vs. Alaska Air Group | Jupiter Fund vs. Finnair Oyj |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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