Correlation Between Citigroup and PowerShares Riverfront
Can any of the company-specific risk be diversified away by investing in both Citigroup and PowerShares Riverfront 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 PowerShares Riverfront into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PowerShares Riverfront Tactical, you can compare the effects of market volatilities on Citigroup and PowerShares Riverfront 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 PowerShares Riverfront. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PowerShares Riverfront.
Diversification Opportunities for Citigroup and PowerShares Riverfront
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and PowerShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PowerShares Riverfront Tactica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerShares Riverfront 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 PowerShares Riverfront. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerShares Riverfront has no effect on the direction of Citigroup i.e., Citigroup and PowerShares Riverfront go up and down completely randomly.
Pair Corralation between Citigroup and PowerShares Riverfront
If you would invest 4,642 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,500 from holding Citigroup or generate 53.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. PowerShares Riverfront Tactica
Performance |
| Timeline |
| Citigroup |
| PowerShares Riverfront |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and PowerShares Riverfront Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PowerShares Riverfront
The main advantage of trading using opposite Citigroup and PowerShares Riverfront positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PowerShares Riverfront 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 PowerShares Riverfront will offset losses from the drop in PowerShares Riverfront's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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