Correlation Between Citigroup and Nuveen Select
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nuveen Select 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 Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nuveen Select Tax Free, you can compare the effects of market volatilities on Citigroup and Nuveen Select 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 Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nuveen Select.
Diversification Opportunities for Citigroup and Nuveen Select
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Nuveen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nuveen Select Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Select Tax 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 Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Select Tax has no effect on the direction of Citigroup i.e., Citigroup and Nuveen Select go up and down completely randomly.
Pair Corralation between Citigroup and Nuveen Select
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.35 times more return on investment than Nuveen Select. However, Citigroup is 2.35 times more volatile than Nuveen Select Tax Free. It trades about 0.1 of its potential returns per unit of risk. Nuveen Select Tax Free is currently generating about 0.04 per unit of risk. If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nuveen Select Tax Free
Performance |
| Timeline |
| Citigroup |
| Nuveen Select Tax |
Citigroup and Nuveen Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nuveen Select
The main advantage of trading using opposite Citigroup and Nuveen Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nuveen Select 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 Select will offset losses from the drop in Nuveen Select's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nuveen Select vs. Nuveen Dividend Advantage | Nuveen Select vs. Nuveen Amt Free Municipal | Nuveen Select vs. Nuveen Municipal Credit | Nuveen Select vs. Nuveen Amt Free |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |