Correlation Between Citigroup and Shelton Green
Can any of the company-specific risk be diversified away by investing in both Citigroup and Shelton Green 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 Shelton Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Shelton Green Alpha, you can compare the effects of market volatilities on Citigroup and Shelton Green 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 Shelton Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shelton Green.
Diversification Opportunities for Citigroup and Shelton Green
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Shelton is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shelton Green Alpha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Green Alpha 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 Shelton Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Green Alpha has no effect on the direction of Citigroup i.e., Citigroup and Shelton Green go up and down completely randomly.
Pair Corralation between Citigroup and Shelton Green
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.45 times more return on investment than Shelton Green. However, Citigroup is 2.45 times more volatile than Shelton Green Alpha. It trades about 0.26 of its potential returns per unit of risk. Shelton Green Alpha is currently generating about 0.3 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Shelton Green Alpha
Performance |
| Timeline |
| Citigroup |
| Shelton Green Alpha |
Citigroup and Shelton Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shelton Green
The main advantage of trading using opposite Citigroup and Shelton Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shelton Green 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 Shelton Green will offset losses from the drop in Shelton Green's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Shelton Green vs. Qs Growth Fund | Shelton Green vs. Eip Growth And | Shelton Green vs. Small Midcap Dividend Income | Shelton Green vs. Tfa Alphagen Growth |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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