Correlation Between Citigroup and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mainstay Winslow 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 Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mainstay Winslow Large, you can compare the effects of market volatilities on Citigroup and Mainstay Winslow 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 Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mainstay Winslow.
Diversification Opportunities for Citigroup and Mainstay Winslow
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Mainstay is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Citigroup i.e., Citigroup and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Citigroup and Mainstay Winslow
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Mainstay Winslow. In addition to that, Citigroup is 1.78 times more volatile than Mainstay Winslow Large. It trades about -0.02 of its total potential returns per unit of risk. Mainstay Winslow Large is currently generating about -0.03 per unit of volatility. If you would invest 909.00 in Mainstay Winslow Large on November 27, 2024 and sell it today you would lose (6.00) from holding Mainstay Winslow Large or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mainstay Winslow Large
Performance |
| Timeline |
| Citigroup |
| Mainstay Winslow Large |
Citigroup and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mainstay Winslow
The main advantage of trading using opposite Citigroup and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mainstay Winslow 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 Winslow will offset losses from the drop in Mainstay Winslow's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mainstay Winslow vs. United Kingdom Small | Mainstay Winslow vs. Old Westbury Small | Mainstay Winslow vs. Transamerica International Small | Mainstay Winslow vs. Needham 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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