Correlation Between Citigroup and Invesco Peak
Can any of the company-specific risk be diversified away by investing in both Citigroup and Invesco Peak 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 Invesco Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Invesco Peak Retirement, you can compare the effects of market volatilities on Citigroup and Invesco Peak 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 Invesco Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Invesco Peak.
Diversification Opportunities for Citigroup and Invesco Peak
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Invesco is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Invesco Peak Retirement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Peak Retirement 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 Invesco Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Peak Retirement has no effect on the direction of Citigroup i.e., Citigroup and Invesco Peak go up and down completely randomly.
Pair Corralation between Citigroup and Invesco Peak
If you would invest 6,166 in Citigroup on September 3, 2024 and sell it today you would earn a total of 921.00 from holding Citigroup or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Citigroup vs. Invesco Peak Retirement
Performance |
| Timeline |
| Citigroup |
| Invesco Peak Retirement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Invesco Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Invesco Peak
The main advantage of trading using opposite Citigroup and Invesco Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Invesco Peak 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 Invesco Peak will offset losses from the drop in Invesco Peak's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Invesco Peak vs. 1919 Financial Services | Invesco Peak vs. Mesirow Financial Small | Invesco Peak vs. Goldman Sachs Financial | Invesco Peak vs. Blackrock Financial Institutions |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |