Correlation Between Citigroup and Navigator Equity
Can any of the company-specific risk be diversified away by investing in both Citigroup and Navigator Equity 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 Navigator Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Navigator Equity Hedged, you can compare the effects of market volatilities on Citigroup and Navigator Equity 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 Navigator Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Navigator Equity.
Diversification Opportunities for Citigroup and Navigator Equity
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Navigator is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Navigator Equity Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navigator Equity Hedged 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 Navigator Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navigator Equity Hedged has no effect on the direction of Citigroup i.e., Citigroup and Navigator Equity go up and down completely randomly.
Pair Corralation between Citigroup and Navigator Equity
If you would invest 6,991 in Citigroup on November 30, 2024 and sell it today you would earn a total of 1,002 from holding Citigroup or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 24.39% |
| Values | Daily Returns |
Citigroup vs. Navigator Equity Hedged
Performance |
| Timeline |
| Citigroup |
| Navigator Equity Hedged |
Risk-Adjusted Performance
Weak
Weak | Strong |
Citigroup and Navigator Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Navigator Equity
The main advantage of trading using opposite Citigroup and Navigator Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Navigator Equity 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 Navigator Equity will offset losses from the drop in Navigator Equity's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Navigator Equity vs. Global Diversified Income | Navigator Equity vs. American Century Diversified | Navigator Equity vs. Diversified Bond Fund | Navigator Equity vs. Western Asset Diversified |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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