Correlation Between Citigroup and Mainstay Income
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mainstay Income 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 Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mainstay Income Builder, you can compare the effects of market volatilities on Citigroup and Mainstay Income 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 Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mainstay Income.
Diversification Opportunities for Citigroup and Mainstay Income
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Mainstay is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mainstay Income Builder in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Income Builder 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 Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Income Builder has no effect on the direction of Citigroup i.e., Citigroup and Mainstay Income go up and down completely randomly.
Pair Corralation between Citigroup and Mainstay Income
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.46 times more return on investment than Mainstay Income. However, Citigroup is 4.46 times more volatile than Mainstay Income Builder. It trades about 0.14 of its potential returns per unit of risk. Mainstay Income Builder is currently generating about -0.01 per unit of risk. If you would invest 6,205 in Citigroup on August 29, 2024 and sell it today you would earn a total of 770.00 from holding Citigroup or generate 12.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 97.67% |
Values | Daily Returns |
Citigroup vs. Mainstay Income Builder
Performance |
Timeline |
Citigroup |
Mainstay Income Builder |
Citigroup and Mainstay Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Mainstay Income
The main advantage of trading using opposite Citigroup and Mainstay Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mainstay Income 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 Income will offset losses from the drop in Mainstay Income's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Mainstay Income vs. Artisan Small Cap | Mainstay Income vs. Small Pany Growth | Mainstay Income vs. Tax Managed Mid Small | Mainstay Income vs. Us Small 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Global Correlations Find global opportunities by holding instruments from different markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |