Correlation Between Citigroup and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Citigroup and Strategic Asset 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 Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Strategic Asset Management, you can compare the effects of market volatilities on Citigroup and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Strategic Asset.
Diversification Opportunities for Citigroup and Strategic Asset
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Strategic is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Citigroup i.e., Citigroup and Strategic Asset go up and down completely randomly.
Pair Corralation between Citigroup and Strategic Asset
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.13 times more return on investment than Strategic Asset. However, Citigroup is 3.13 times more volatile than Strategic Asset Management. It trades about 0.08 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.11 per unit of risk. If you would invest 4,054 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,196 from holding Citigroup or generate 78.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citigroup vs. Strategic Asset Management
Performance |
| Timeline |
| Citigroup |
| Strategic Asset Mana |
Citigroup and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Strategic Asset
The main advantage of trading using opposite Citigroup and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Strategic Asset vs. Balanced Fund Investor | Strategic Asset vs. Abr 7525 Volatility | Strategic Asset vs. Western Asset Municipal | Strategic Asset vs. Materials Portfolio Fidelity |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |