Correlation Between Citigroup and Nationwide Geneva
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nationwide Geneva 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 Geneva into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nationwide Geneva Mid, you can compare the effects of market volatilities on Citigroup and Nationwide Geneva 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 Geneva. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nationwide Geneva.
Diversification Opportunities for Citigroup and Nationwide Geneva
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Nationwide is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nationwide Geneva Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Geneva Mid 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 Geneva. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Geneva Mid has no effect on the direction of Citigroup i.e., Citigroup and Nationwide Geneva go up and down completely randomly.
Pair Corralation between Citigroup and Nationwide Geneva
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.87 times more return on investment than Nationwide Geneva. However, Citigroup is 1.87 times more volatile than Nationwide Geneva Mid. It trades about 0.2 of its potential returns per unit of risk. Nationwide Geneva Mid is currently generating about 0.32 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nationwide Geneva Mid
Performance |
| Timeline |
| Citigroup |
| Nationwide Geneva Mid |
Citigroup and Nationwide Geneva Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nationwide Geneva
The main advantage of trading using opposite Citigroup and Nationwide Geneva positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nationwide Geneva 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 Geneva will offset losses from the drop in Nationwide Geneva's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nationwide Geneva vs. Qs Large Cap | Nationwide Geneva vs. Balanced Fund Investor | Nationwide Geneva vs. Abr 7525 Volatility | Nationwide Geneva vs. Western Asset Municipal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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