Correlation Between Citigroup and Columbia Multi
Can any of the company-specific risk be diversified away by investing in both Citigroup and Columbia Multi 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 Columbia Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Columbia Multi Sector Municipal, you can compare the effects of market volatilities on Citigroup and Columbia Multi 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 Columbia Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Columbia Multi.
Diversification Opportunities for Citigroup and Columbia Multi
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Columbia is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Columbia Multi Sector Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Multi Sector 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 Columbia Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Multi Sector has no effect on the direction of Citigroup i.e., Citigroup and Columbia Multi go up and down completely randomly.
Pair Corralation between Citigroup and Columbia Multi
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.02 times more return on investment than Columbia Multi. However, Citigroup is 5.02 times more volatile than Columbia Multi Sector Municipal. It trades about 0.08 of its potential returns per unit of risk. Columbia Multi Sector Municipal is currently generating about 0.05 per unit of risk. If you would invest 5,415 in Citigroup on August 28, 2024 and sell it today you would earn a total of 1,660 from holding Citigroup or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
Citigroup vs. Columbia Multi Sector Municipa
Performance |
| Timeline |
| Citigroup |
| Columbia Multi Sector |
Citigroup and Columbia Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Columbia Multi
The main advantage of trading using opposite Citigroup and Columbia Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Columbia Multi 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 Columbia Multi will offset losses from the drop in Columbia Multi's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Columbia Multi vs. SSGA Active Trust | Columbia Multi vs. SPDR MarketAxess Investment | Columbia Multi vs. SSGA Active Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |