Correlation Between Citigroup and Mainstay Vertible
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mainstay Vertible 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 Mainstay Vertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mainstay Vertible Fund, you can compare the effects of market volatilities on Citigroup and Mainstay Vertible 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 Mainstay Vertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mainstay Vertible.
Diversification Opportunities for Citigroup and Mainstay Vertible
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Mainstay is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mainstay Vertible Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Vertible 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 Mainstay Vertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Vertible has no effect on the direction of Citigroup i.e., Citigroup and Mainstay Vertible go up and down completely randomly.
Pair Corralation between Citigroup and Mainstay Vertible
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.02 times more return on investment than Mainstay Vertible. However, Citigroup is 4.02 times more volatile than Mainstay Vertible Fund. It trades about 0.07 of its potential returns per unit of risk. Mainstay Vertible Fund is currently generating about 0.16 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Mainstay Vertible Fund
Performance |
| Timeline |
| Citigroup |
| Mainstay Vertible |
Citigroup and Mainstay Vertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mainstay Vertible
The main advantage of trading using opposite Citigroup and Mainstay Vertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mainstay Vertible 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 Mainstay Vertible will offset losses from the drop in Mainstay Vertible's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mainstay Vertible vs. Mainstay High Yield | Mainstay Vertible vs. Mainstay Income Builder | Mainstay Vertible vs. Mainstay Sp 500 | Mainstay Vertible vs. Mainstay Large Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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