Correlation Between Citigroup and Aquila Tax
Can any of the company-specific risk be diversified away by investing in both Citigroup and Aquila Tax 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 Aquila Tax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Aquila Tax Free Trust, you can compare the effects of market volatilities on Citigroup and Aquila Tax 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 Aquila Tax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aquila Tax.
Diversification Opportunities for Citigroup and Aquila Tax
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Aquila is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aquila Tax Free Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Tax Free 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 Aquila Tax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Tax Free has no effect on the direction of Citigroup i.e., Citigroup and Aquila Tax go up and down completely randomly.
Pair Corralation between Citigroup and Aquila Tax
If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. Aquila Tax Free Trust
Performance |
| Timeline |
| Citigroup |
| Aquila Tax Free |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Aquila Tax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aquila Tax
The main advantage of trading using opposite Citigroup and Aquila Tax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aquila Tax 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 Aquila Tax will offset losses from the drop in Aquila Tax's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Aquila Tax vs. Ep Emerging Markets | Aquila Tax vs. Transamerica Emerging Markets | Aquila Tax vs. Barings Emerging Markets | Aquila Tax vs. Siit Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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