Correlation Between Citigroup and Lsv Conservative
Can any of the company-specific risk be diversified away by investing in both Citigroup and Lsv Conservative 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 Lsv Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Lsv Servative Value, you can compare the effects of market volatilities on Citigroup and Lsv Conservative 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 Lsv Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Lsv Conservative.
Diversification Opportunities for Citigroup and Lsv Conservative
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Lsv is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Lsv Servative Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Servative Value 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 Lsv Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Servative Value has no effect on the direction of Citigroup i.e., Citigroup and Lsv Conservative go up and down completely randomly.
Pair Corralation between Citigroup and Lsv Conservative
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.92 times more return on investment than Lsv Conservative. However, Citigroup is 1.92 times more volatile than Lsv Servative Value. It trades about 0.07 of its potential returns per unit of risk. Lsv Servative Value is currently generating about 0.06 per unit of risk. If you would invest 4,218 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Lsv Servative Value
Performance |
| Timeline |
| Citigroup |
| Lsv Servative Value |
Citigroup and Lsv Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Lsv Conservative
The main advantage of trading using opposite Citigroup and Lsv Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Lsv Conservative 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 Lsv Conservative will offset losses from the drop in Lsv Conservative's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Lsv Conservative vs. Lsv Global Managed | Lsv Conservative vs. Lsv Global Value | Lsv Conservative vs. Lsv Value Equity | Lsv Conservative vs. Lsv Managed Volatility |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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