Correlation Between Citigroup and Harbor ETF
Can any of the company-specific risk be diversified away by investing in both Citigroup and Harbor ETF 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 Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Harbor ETF Trust, you can compare the effects of market volatilities on Citigroup and Harbor ETF 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 Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Harbor ETF.
Diversification Opportunities for Citigroup and Harbor ETF
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Harbor is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust 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 Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Citigroup i.e., Citigroup and Harbor ETF go up and down completely randomly.
Pair Corralation between Citigroup and Harbor ETF
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.89 times more return on investment than Harbor ETF. However, Citigroup is 3.89 times more volatile than Harbor ETF Trust. It trades about 0.25 of its potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.1 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Harbor ETF Trust
Performance |
| Timeline |
| Citigroup |
| Harbor ETF Trust |
Citigroup and Harbor ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Harbor ETF
The main advantage of trading using opposite Citigroup and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Harbor ETF vs. Tidal Trust II | Harbor ETF vs. EA Series Trust | Harbor ETF vs. ProShares VIX Mid Term | Harbor ETF vs. ProShares VIX Short Term |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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