Correlation Between Citigroup and Pimco Extended
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pimco Extended 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 Pimco Extended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pimco Extended Duration, you can compare the effects of market volatilities on Citigroup and Pimco Extended 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 Pimco Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pimco Extended.
Diversification Opportunities for Citigroup and Pimco Extended
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Pimco is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pimco Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Extended Duration 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 Pimco Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Extended Duration has no effect on the direction of Citigroup i.e., Citigroup and Pimco Extended go up and down completely randomly.
Pair Corralation between Citigroup and Pimco Extended
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.23 times more return on investment than Pimco Extended. However, Citigroup is 1.23 times more volatile than Pimco Extended Duration. It trades about 0.26 of its potential returns per unit of risk. Pimco Extended Duration is currently generating about 0.08 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Pimco Extended Duration
Performance |
| Timeline |
| Citigroup |
| Pimco Extended Duration |
Citigroup and Pimco Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pimco Extended
The main advantage of trading using opposite Citigroup and Pimco Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pimco Extended 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 Pimco Extended will offset losses from the drop in Pimco Extended's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Pimco Extended vs. Vanguard Extended Duration | Pimco Extended vs. Pimco Long Term Credit | Pimco Extended vs. Pimco Extended Duration | Pimco Extended vs. Pimco Long Term Credit |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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