Correlation Between Citigroup and Mainstay California
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mainstay California 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 California into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mainstay California Tax, you can compare the effects of market volatilities on Citigroup and Mainstay California 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 California. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mainstay California.
Diversification Opportunities for Citigroup and Mainstay California
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Mainstay is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mainstay California Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay California Tax 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 California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay California Tax has no effect on the direction of Citigroup i.e., Citigroup and Mainstay California go up and down completely randomly.
Pair Corralation between Citigroup and Mainstay California
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Mainstay California. In addition to that, Citigroup is 7.5 times more volatile than Mainstay California Tax. It trades about -0.08 of its total potential returns per unit of risk. Mainstay California Tax is currently generating about 0.2 per unit of volatility. If you would invest 964.00 in Mainstay California Tax on November 28, 2024 and sell it today you would earn a total of 9.00 from holding Mainstay California Tax or generate 0.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mainstay California Tax
Performance |
| Timeline |
| Citigroup |
| Mainstay California Tax |
Citigroup and Mainstay California Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mainstay California
The main advantage of trading using opposite Citigroup and Mainstay California positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mainstay California 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 California will offset losses from the drop in Mainstay California's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mainstay California vs. Calvert Moderate Allocation | Mainstay California vs. Enhanced Large Pany | Mainstay California vs. Guidemark Large Cap | Mainstay California vs. Knights Of Umbus |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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