Correlation Between Citigroup and Marsico Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Marsico Global 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 Marsico Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Marsico Global, you can compare the effects of market volatilities on Citigroup and Marsico Global 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 Marsico Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Marsico Global.
Diversification Opportunities for Citigroup and Marsico Global
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Marsico is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Marsico Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marsico Global 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 Marsico Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marsico Global has no effect on the direction of Citigroup i.e., Citigroup and Marsico Global go up and down completely randomly.
Pair Corralation between Citigroup and Marsico Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.26 times more return on investment than Marsico Global. However, Citigroup is 2.26 times more volatile than Marsico Global. It trades about 0.27 of its potential returns per unit of risk. Marsico Global is currently generating about 0.24 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Marsico Global
Performance |
| Timeline |
| Citigroup |
| Marsico Global |
Citigroup and Marsico Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Marsico Global
The main advantage of trading using opposite Citigroup and Marsico Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Marsico Global 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 Marsico Global will offset losses from the drop in Marsico Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Marsico Global vs. Pender Real Estate | Marsico Global vs. Goldman Sachs Real | Marsico Global vs. Amg Managers Centersquare | Marsico Global vs. Virtus Real Estate |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |