Correlation Between Citigroup and Mission Bancorp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mission Bancorp 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 Mission Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mission Bancorp, you can compare the effects of market volatilities on Citigroup and Mission Bancorp 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 Mission Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mission Bancorp.
Diversification Opportunities for Citigroup and Mission Bancorp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Mission is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mission Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mission Bancorp 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 Mission Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mission Bancorp has no effect on the direction of Citigroup i.e., Citigroup and Mission Bancorp go up and down completely randomly.
Pair Corralation between Citigroup and Mission Bancorp
If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Citigroup vs. Mission Bancorp
Performance |
| Timeline |
| Citigroup |
| Mission Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Mission Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mission Bancorp
The main advantage of trading using opposite Citigroup and Mission Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mission Bancorp 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 Mission Bancorp will offset losses from the drop in Mission Bancorp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mission Bancorp vs. MNB Holdings Corp | Mission Bancorp vs. Harbor Bankshares | Mission Bancorp vs. Oconee Financial | Mission Bancorp vs. Mission Valley Bancorp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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