Correlation Between Citigroup and Nationwide Gqg
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nationwide Gqg 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 Nationwide Gqg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nationwide Gqg Quality, you can compare the effects of market volatilities on Citigroup and Nationwide Gqg 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 Nationwide Gqg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nationwide Gqg.
Diversification Opportunities for Citigroup and Nationwide Gqg
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Nationwide is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nationwide Gqg Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Gqg Quality 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 Nationwide Gqg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Gqg Quality has no effect on the direction of Citigroup i.e., Citigroup and Nationwide Gqg go up and down completely randomly.
Pair Corralation between Citigroup and Nationwide Gqg
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.63 times more return on investment than Nationwide Gqg. However, Citigroup is 2.63 times more volatile than Nationwide Gqg Quality. It trades about 0.21 of its potential returns per unit of risk. Nationwide Gqg Quality is currently generating about 0.29 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nationwide Gqg Quality
Performance |
| Timeline |
| Citigroup |
| Nationwide Gqg Quality |
Citigroup and Nationwide Gqg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nationwide Gqg
The main advantage of trading using opposite Citigroup and Nationwide Gqg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nationwide Gqg 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 Nationwide Gqg will offset losses from the drop in Nationwide Gqg's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nationwide Gqg vs. Ambrus Core Bond | Nationwide Gqg vs. Multisector Bond Sma | Nationwide Gqg vs. Touchstone Premium Yield | Nationwide Gqg vs. Versatile Bond Portfolio |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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