Correlation Between Citigroup and Oakmark Equity
Can any of the company-specific risk be diversified away by investing in both Citigroup and Oakmark Equity 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 Oakmark Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Oakmark Equity And, you can compare the effects of market volatilities on Citigroup and Oakmark Equity 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 Oakmark Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Oakmark Equity.
Diversification Opportunities for Citigroup and Oakmark Equity
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Oakmark is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Oakmark Equity And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakmark Equity And 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 Oakmark Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakmark Equity And has no effect on the direction of Citigroup i.e., Citigroup and Oakmark Equity go up and down completely randomly.
Pair Corralation between Citigroup and Oakmark Equity
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.65 times more return on investment than Oakmark Equity. However, Citigroup is 2.65 times more volatile than Oakmark Equity And. It trades about 0.07 of its potential returns per unit of risk. Oakmark Equity And is currently generating about 0.09 per unit of risk. If you would invest 4,118 in Citigroup on August 29, 2024 and sell it today you would earn a total of 2,898 from holding Citigroup or generate 70.37% 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. Oakmark Equity And
Performance |
| Timeline |
| Citigroup |
| Oakmark Equity And |
Citigroup and Oakmark Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Oakmark Equity
The main advantage of trading using opposite Citigroup and Oakmark Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Oakmark Equity 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 Oakmark Equity will offset losses from the drop in Oakmark Equity's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Oakmark Equity vs. Lord Abbett Small | Oakmark Equity vs. Queens Road Small | Oakmark Equity vs. American Century Etf | Oakmark Equity vs. Mid Cap Growth Profund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets |