Correlation Between Citigroup and Polen Us
Can any of the company-specific risk be diversified away by investing in both Citigroup and Polen Us 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 Polen Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Polen Small Pany, you can compare the effects of market volatilities on Citigroup and Polen Us 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 Polen Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Polen Us.
Diversification Opportunities for Citigroup and Polen Us
Almost no diversification
The 3 months correlation between Citigroup and Polen is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Polen Small Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen Small Pany 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 Polen Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen Small Pany has no effect on the direction of Citigroup i.e., Citigroup and Polen Us go up and down completely randomly.
Pair Corralation between Citigroup and Polen Us
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.27 times more return on investment than Polen Us. However, Citigroup is 1.27 times more volatile than Polen Small Pany. It trades about 0.08 of its potential returns per unit of risk. Polen Small Pany is currently generating about 0.05 per unit of risk. If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Polen Small Pany
Performance |
| Timeline |
| Citigroup |
| Polen Small Pany |
Citigroup and Polen Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Polen Us
The main advantage of trading using opposite Citigroup and Polen Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Polen Us 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 Polen Us will offset losses from the drop in Polen Us' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Polen Us vs. American Century Diversified | Polen Us vs. The Gabelli Small | Polen Us vs. Principal Lifetime Hybrid | Polen Us vs. Harbor Diversified International |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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