Correlation Between Citigroup and Nuveen Intermediate
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nuveen Intermediate 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 Nuveen Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nuveen Intermediate Duration, you can compare the effects of market volatilities on Citigroup and Nuveen Intermediate 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 Nuveen Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nuveen Intermediate.
Diversification Opportunities for Citigroup and Nuveen Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Nuveen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nuveen Intermediate Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Intermediate 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 Nuveen Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Intermediate has no effect on the direction of Citigroup i.e., Citigroup and Nuveen Intermediate go up and down completely randomly.
Pair Corralation between Citigroup and Nuveen Intermediate
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.17 times more return on investment than Nuveen Intermediate. However, Citigroup is 5.83 times less risky than Nuveen Intermediate. It trades about 0.07 of its potential returns per unit of risk. Nuveen Intermediate Duration is currently generating about 0.0 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,857 from holding Citigroup or generate 69.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 31.65% |
| Values | Daily Returns |
Citigroup vs. Nuveen Intermediate Duration
Performance |
| Timeline |
| Citigroup |
| Nuveen Intermediate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Nuveen Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nuveen Intermediate
The main advantage of trading using opposite Citigroup and Nuveen Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nuveen Intermediate 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 Nuveen Intermediate will offset losses from the drop in Nuveen Intermediate's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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