Correlation Between Citigroup and Payden/kravitz Cash
Can any of the company-specific risk be diversified away by investing in both Citigroup and Payden/kravitz Cash 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 Payden/kravitz Cash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Paydenkravitz Cash Balance, you can compare the effects of market volatilities on Citigroup and Payden/kravitz Cash 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 Payden/kravitz Cash. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Payden/kravitz Cash.
Diversification Opportunities for Citigroup and Payden/kravitz Cash
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Payden/kravitz is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Paydenkravitz Cash Balance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden/kravitz Cash 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 Payden/kravitz Cash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden/kravitz Cash has no effect on the direction of Citigroup i.e., Citigroup and Payden/kravitz Cash go up and down completely randomly.
Pair Corralation between Citigroup and Payden/kravitz Cash
Taking into account the 90-day investment horizon Citigroup is expected to generate 21.73 times more return on investment than Payden/kravitz Cash. However, Citigroup is 21.73 times more volatile than Paydenkravitz Cash Balance. It trades about 0.09 of its potential returns per unit of risk. Paydenkravitz Cash Balance is currently generating about 0.34 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Paydenkravitz Cash Balance
Performance |
| Timeline |
| Citigroup |
| Payden/kravitz Cash |
Citigroup and Payden/kravitz Cash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Payden/kravitz Cash
The main advantage of trading using opposite Citigroup and Payden/kravitz Cash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Payden/kravitz Cash 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 Payden/kravitz Cash will offset losses from the drop in Payden/kravitz Cash's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Payden/kravitz Cash vs. Artisan Select Equity | Payden/kravitz Cash vs. Locorr Dynamic Equity | Payden/kravitz Cash vs. Balanced Fund Retail | Payden/kravitz Cash vs. Small Cap 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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