Correlation Between Citigroup and Oppenheimer Steelpath
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oppenheimer Steelpath 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 Oppenheimer Steelpath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oppenheimer Steelpath Mlp, you can compare the effects of market volatilities on Citigroup and Oppenheimer Steelpath 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 Oppenheimer Steelpath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oppenheimer Steelpath.
Diversification Opportunities for Citigroup and Oppenheimer Steelpath
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Oppenheimer is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oppenheimer Steelpath Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Steelpath Mlp 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 Oppenheimer Steelpath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Steelpath Mlp has no effect on the direction of Citigroup i.e., Citigroup and Oppenheimer Steelpath go up and down completely randomly.
Pair Corralation between Citigroup and Oppenheimer Steelpath
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.16 times more return on investment than Oppenheimer Steelpath. However, Citigroup is 2.16 times more volatile than Oppenheimer Steelpath Mlp. It trades about 0.08 of its potential returns per unit of risk. Oppenheimer Steelpath Mlp is currently generating about 0.17 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.73% |
| Values | Daily Returns |
Citigroup vs. Oppenheimer Steelpath Mlp
Performance |
| Timeline |
| Citigroup |
| Oppenheimer Steelpath Mlp |
Citigroup and Oppenheimer Steelpath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oppenheimer Steelpath
The main advantage of trading using opposite Citigroup and Oppenheimer Steelpath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oppenheimer Steelpath 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 Oppenheimer Steelpath will offset losses from the drop in Oppenheimer Steelpath's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oppenheimer Steelpath vs. Qs Large Cap | Oppenheimer Steelpath vs. Pace Large Growth | Oppenheimer Steelpath vs. Morningstar Unconstrained Allocation | Oppenheimer Steelpath vs. Federated Kaufmann Large |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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