Correlation Between Citigroup and Fundvantage Trust
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fundvantage Trust 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 Fundvantage Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fundvantage Trust , you can compare the effects of market volatilities on Citigroup and Fundvantage Trust 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 Fundvantage Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fundvantage Trust.
Diversification Opportunities for Citigroup and Fundvantage Trust
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Fundvantage is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fundvantage Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fundvantage Trust 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 Fundvantage Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fundvantage Trust has no effect on the direction of Citigroup i.e., Citigroup and Fundvantage Trust go up and down completely randomly.
Pair Corralation between Citigroup and Fundvantage Trust
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.06 times more return on investment than Fundvantage Trust. However, Citigroup is 6.06 times more volatile than Fundvantage Trust . It trades about 0.08 of its potential returns per unit of risk. Fundvantage Trust is currently generating about 0.15 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fundvantage Trust
Performance |
| Timeline |
| Citigroup |
| Fundvantage Trust |
Citigroup and Fundvantage Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fundvantage Trust
The main advantage of trading using opposite Citigroup and Fundvantage Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fundvantage Trust 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 Fundvantage Trust will offset losses from the drop in Fundvantage Trust's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fundvantage Trust vs. Ab Select Equity | Fundvantage Trust vs. Icon Equity Income | Fundvantage Trust vs. Rbc Global Equity | Fundvantage Trust vs. Cutler Equity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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