Correlation Between Citigroup and IPath JPYUSD
Can any of the company-specific risk be diversified away by investing in both Citigroup and IPath JPYUSD 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 IPath JPYUSD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and IPath JPYUSD Exchange, you can compare the effects of market volatilities on Citigroup and IPath JPYUSD 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 IPath JPYUSD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IPath JPYUSD.
Diversification Opportunities for Citigroup and IPath JPYUSD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and IPath is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and IPath JPYUSD Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IPath JPYUSD Exchange 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 IPath JPYUSD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPath JPYUSD Exchange has no effect on the direction of Citigroup i.e., Citigroup and IPath JPYUSD go up and down completely randomly.
Pair Corralation between Citigroup and IPath JPYUSD
If you would invest 4,714 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,373 from holding Citigroup or generate 50.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. IPath JPYUSD Exchange
Performance |
| Timeline |
| Citigroup |
| IPath JPYUSD Exchange |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and IPath JPYUSD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IPath JPYUSD
The main advantage of trading using opposite Citigroup and IPath JPYUSD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IPath JPYUSD 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 IPath JPYUSD will offset losses from the drop in IPath JPYUSD's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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