Correlation Between Citigroup and Invesco Active
Can any of the company-specific risk be diversified away by investing in both Citigroup and Invesco Active 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 Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Invesco Active Real, you can compare the effects of market volatilities on Citigroup and Invesco Active 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 Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Invesco Active.
Diversification Opportunities for Citigroup and Invesco Active
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Invesco is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Invesco Active Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Active Real 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 Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Active Real has no effect on the direction of Citigroup i.e., Citigroup and Invesco Active go up and down completely randomly.
Pair Corralation between Citigroup and Invesco Active
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.1 times more return on investment than Invesco Active. However, Citigroup is 2.1 times more volatile than Invesco Active Real. It trades about 0.25 of its potential returns per unit of risk. Invesco Active Real is currently generating about 0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Invesco Active Real
Performance |
| Timeline |
| Citigroup |
| Invesco Active Real |
Citigroup and Invesco Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Invesco Active
The main advantage of trading using opposite Citigroup and Invesco Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Invesco Active 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 Active will offset losses from the drop in Invesco Active's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Invesco Active vs. Vanguard Real Estate | Invesco Active vs. Howard Hughes | Invesco Active vs. Site Centers Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |