Correlation Between Citigroup and Pacer Lunt
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pacer Lunt 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 Pacer Lunt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pacer Lunt Large, you can compare the effects of market volatilities on Citigroup and Pacer Lunt 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 Pacer Lunt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pacer Lunt.
Diversification Opportunities for Citigroup and Pacer Lunt
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Pacer is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pacer Lunt Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Lunt Large 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 Pacer Lunt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Lunt Large has no effect on the direction of Citigroup i.e., Citigroup and Pacer Lunt go up and down completely randomly.
Pair Corralation between Citigroup and Pacer Lunt
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.02 times more return on investment than Pacer Lunt. However, Citigroup is 2.02 times more volatile than Pacer Lunt Large. It trades about 0.45 of its potential returns per unit of risk. Pacer Lunt Large is currently generating about 0.14 per unit of risk. If you would invest 6,977 in Citigroup on October 23, 2024 and sell it today you would earn a total of 1,190 from holding Citigroup or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Pacer Lunt Large
Performance |
| Timeline |
| Citigroup |
| Pacer Lunt Large |
Citigroup and Pacer Lunt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pacer Lunt
The main advantage of trading using opposite Citigroup and Pacer Lunt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pacer Lunt 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 Pacer Lunt will offset losses from the drop in Pacer Lunt's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Pacer Lunt vs. Pacer Lunt Large | Pacer Lunt vs. Pacer Lunt MidCap | Pacer Lunt vs. Pacer Trendpilot Bond | Pacer Lunt vs. Pacer Small Cap |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |