Correlation Between Citigroup and AMUNDI MSCI
Can any of the company-specific risk be diversified away by investing in both Citigroup and AMUNDI MSCI 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 AMUNDI MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AMUNDI MSCI North, you can compare the effects of market volatilities on Citigroup and AMUNDI MSCI 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 AMUNDI MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AMUNDI MSCI.
Diversification Opportunities for Citigroup and AMUNDI MSCI
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and AMUNDI is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AMUNDI MSCI North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMUNDI MSCI North 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 AMUNDI MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMUNDI MSCI North has no effect on the direction of Citigroup i.e., Citigroup and AMUNDI MSCI go up and down completely randomly.
Pair Corralation between Citigroup and AMUNDI MSCI
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.86 times more return on investment than AMUNDI MSCI. However, Citigroup is 1.86 times more volatile than AMUNDI MSCI North. It trades about 0.32 of its potential returns per unit of risk. AMUNDI MSCI North is currently generating about 0.38 per unit of risk. If you would invest 6,235 in Citigroup on September 5, 2024 and sell it today you would earn a total of 915.00 from holding Citigroup or generate 14.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. AMUNDI MSCI North
Performance |
| Timeline |
| Citigroup |
| AMUNDI MSCI North |
Citigroup and AMUNDI MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AMUNDI MSCI
The main advantage of trading using opposite Citigroup and AMUNDI MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AMUNDI MSCI 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 AMUNDI MSCI will offset losses from the drop in AMUNDI MSCI's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AMUNDI MSCI vs. Amundi Index Solutions | AMUNDI MSCI vs. Amundi ETF MSCI | AMUNDI MSCI vs. Amundi Index Solutions | AMUNDI MSCI vs. AMUNDI MSCI USA |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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