Correlation Between Citigroup and Deutsche Multi-asset
Can any of the company-specific risk be diversified away by investing in both Citigroup and Deutsche Multi-asset 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 Deutsche Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Deutsche Multi Asset Moderate, you can compare the effects of market volatilities on Citigroup and Deutsche Multi-asset 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 Deutsche Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Deutsche Multi-asset.
Diversification Opportunities for Citigroup and Deutsche Multi-asset
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Deutsche is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Deutsche Multi Asset Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Multi Asset 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 Deutsche Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Multi Asset has no effect on the direction of Citigroup i.e., Citigroup and Deutsche Multi-asset go up and down completely randomly.
Pair Corralation between Citigroup and Deutsche Multi-asset
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.1 times more return on investment than Deutsche Multi-asset. However, Citigroup is 3.1 times more volatile than Deutsche Multi Asset Moderate. It trades about 0.11 of its potential returns per unit of risk. Deutsche Multi Asset Moderate is currently generating about 0.12 per unit of risk. If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Deutsche Multi Asset Moderate
Performance |
| Timeline |
| Citigroup |
| Deutsche Multi Asset |
Citigroup and Deutsche Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Deutsche Multi-asset
The main advantage of trading using opposite Citigroup and Deutsche Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Deutsche Multi-asset 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 Deutsche Multi-asset will offset losses from the drop in Deutsche Multi-asset's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Deutsche Multi-asset vs. Calvert Global Energy | Deutsche Multi-asset vs. Icon Natural Resources | Deutsche Multi-asset vs. Oil Gas Ultrasector | Deutsche Multi-asset vs. Energy Basic Materials |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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