Correlation Between Citigroup and Spinnaker ETF
Can any of the company-specific risk be diversified away by investing in both Citigroup and Spinnaker ETF 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 Spinnaker ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Spinnaker ETF Series, you can compare the effects of market volatilities on Citigroup and Spinnaker ETF 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 Spinnaker ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Spinnaker ETF.
Diversification Opportunities for Citigroup and Spinnaker ETF
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Spinnaker is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Spinnaker ETF Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spinnaker ETF Series 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 Spinnaker ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spinnaker ETF Series has no effect on the direction of Citigroup i.e., Citigroup and Spinnaker ETF go up and down completely randomly.
Pair Corralation between Citigroup and Spinnaker ETF
Taking into account the 90-day investment horizon Citigroup is expected to generate 51.03 times less return on investment than Spinnaker ETF. But when comparing it to its historical volatility, Citigroup is 47.79 times less risky than Spinnaker ETF. It trades about 0.07 of its potential returns per unit of risk. Spinnaker ETF Series is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Spinnaker ETF Series on August 29, 2024 and sell it today you would earn a total of 1,017 from holding Spinnaker ETF Series or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 32.86% |
| Values | Daily Returns |
Citigroup vs. Spinnaker ETF Series
Performance |
| Timeline |
| Citigroup |
| Spinnaker ETF Series |
Citigroup and Spinnaker ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Spinnaker ETF
The main advantage of trading using opposite Citigroup and Spinnaker ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Spinnaker ETF 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 Spinnaker ETF will offset losses from the drop in Spinnaker ETF's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Spinnaker ETF vs. Valued Advisers Trust | Spinnaker ETF vs. Columbia Diversified Fixed | Spinnaker ETF vs. Principal Exchange Traded Funds | Spinnaker ETF vs. Doubleline Etf Trust |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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