Correlation Between Citigroup and MFT
Can any of the company-specific risk be diversified away by investing in both Citigroup and MFT 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 MFT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MFT, you can compare the effects of market volatilities on Citigroup and MFT 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 MFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MFT.
Diversification Opportunities for Citigroup and MFT
Pay attention - limited upside
The 3 months correlation between Citigroup and MFT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MFT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFT 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 MFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFT has no effect on the direction of Citigroup i.e., Citigroup and MFT go up and down completely randomly.
Pair Corralation between Citigroup and MFT
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 | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. MFT
Performance |
| Timeline |
| Citigroup |
| MFT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and MFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MFT
The main advantage of trading using opposite Citigroup and MFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MFT 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 MFT will offset losses from the drop in MFT'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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