Correlation Between Citigroup and PIMCO 15
Can any of the company-specific risk be diversified away by investing in both Citigroup and PIMCO 15 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 PIMCO 15 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PIMCO 15 Year, you can compare the effects of market volatilities on Citigroup and PIMCO 15 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 PIMCO 15. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PIMCO 15.
Diversification Opportunities for Citigroup and PIMCO 15
Pay attention - limited upside
The 3 months correlation between Citigroup and PIMCO is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PIMCO 15 Year in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 15 Year 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 PIMCO 15. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO 15 Year has no effect on the direction of Citigroup i.e., Citigroup and PIMCO 15 go up and down completely randomly.
Pair Corralation between Citigroup and PIMCO 15
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.75 times more return on investment than PIMCO 15. However, Citigroup is 2.75 times more volatile than PIMCO 15 Year. It trades about 0.21 of its potential returns per unit of risk. PIMCO 15 Year is currently generating about -0.1 per unit of risk. If you would invest 6,255 in Citigroup on August 24, 2024 and sell it today you would earn a total of 640.00 from holding Citigroup or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. PIMCO 15 Year
Performance |
| Timeline |
| Citigroup |
| PIMCO 15 Year |
Citigroup and PIMCO 15 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PIMCO 15
The main advantage of trading using opposite Citigroup and PIMCO 15 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PIMCO 15 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 PIMCO 15 will offset losses from the drop in PIMCO 15's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PIMCO 15 vs. VanEck JP Morgan | PIMCO 15 vs. Vanguard Extended Duration | PIMCO 15 vs. PIMCO 1 5 Year | PIMCO 15 vs. PIMCO Broad TIPS |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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