Correlation Between Citigroup and Riskproreg
Can any of the company-specific risk be diversified away by investing in both Citigroup and Riskproreg 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 Riskproreg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Riskproreg 30 Fund, you can compare the effects of market volatilities on Citigroup and Riskproreg 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 Riskproreg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Riskproreg.
Diversification Opportunities for Citigroup and Riskproreg
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Riskproreg is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Riskproreg 30 Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskproreg 30 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 Riskproreg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskproreg 30 has no effect on the direction of Citigroup i.e., Citigroup and Riskproreg go up and down completely randomly.
Pair Corralation between Citigroup and Riskproreg
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.13 times more return on investment than Riskproreg. However, Citigroup is 2.13 times more volatile than Riskproreg 30 Fund. It trades about 0.07 of its potential returns per unit of risk. Riskproreg 30 Fund is currently generating about 0.07 per unit of risk. If you would invest 4,812 in Citigroup on October 24, 2024 and sell it today you would earn a total of 3,391 from holding Citigroup or generate 70.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Citigroup vs. Riskproreg 30 Fund
Performance |
| Timeline |
| Citigroup |
| Riskproreg 30 |
Citigroup and Riskproreg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Riskproreg
The main advantage of trading using opposite Citigroup and Riskproreg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Riskproreg 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 Riskproreg will offset losses from the drop in Riskproreg's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Riskproreg vs. Goldman Sachs Local | Riskproreg vs. Locorr Market Trend | Riskproreg vs. Siit Emerging Markets | Riskproreg vs. Extended Market Index |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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