Correlation Between Citigroup and Nationwide Core
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nationwide Core 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 Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nationwide E Plus, you can compare the effects of market volatilities on Citigroup and Nationwide Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nationwide Core.
Diversification Opportunities for Citigroup and Nationwide Core
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Nationwide is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nationwide E Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide E Plus 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide E Plus has no effect on the direction of Citigroup i.e., Citigroup and Nationwide Core go up and down completely randomly.
Pair Corralation between Citigroup and Nationwide Core
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.26 times more return on investment than Nationwide Core. However, Citigroup is 7.26 times more volatile than Nationwide E Plus. It trades about 0.29 of its potential returns per unit of risk. Nationwide E Plus is currently generating about -0.1 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nationwide E Plus
Performance |
| Timeline |
| Citigroup |
| Nationwide E Plus |
Citigroup and Nationwide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nationwide Core
The main advantage of trading using opposite Citigroup and Nationwide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nationwide Core 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 Core will offset losses from the drop in Nationwide Core's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Nationwide Core vs. Federated Equity Income | Nationwide Core vs. Small Cap Equity | Nationwide Core vs. Ab Select Equity | Nationwide Core vs. Gmo Global Equity |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |