Correlation Between Citigroup and Performance Trust
Can any of the company-specific risk be diversified away by investing in both Citigroup and Performance Trust 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 Performance Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Performance Trust Strategic, you can compare the effects of market volatilities on Citigroup and Performance Trust 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 Performance Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Performance Trust.
Diversification Opportunities for Citigroup and Performance Trust
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Performance is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Performance Trust Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust 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 Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of Citigroup i.e., Citigroup and Performance Trust go up and down completely randomly.
Pair Corralation between Citigroup and Performance Trust
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.91 times more return on investment than Performance Trust. However, Citigroup is 5.91 times more volatile than Performance Trust Strategic. It trades about 0.07 of its potential returns per unit of risk. Performance Trust Strategic is currently generating about 0.1 per unit of risk. If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Performance Trust Strategic
Performance |
| Timeline |
| Citigroup |
| Performance Trust |
Citigroup and Performance Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Performance Trust
The main advantage of trading using opposite Citigroup and Performance Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Performance Trust 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 Performance Trust will offset losses from the drop in Performance Trust's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Performance Trust vs. Alphacentric Income Opportunities | Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Guggenheim Total Return | Performance Trust vs. Pimco Income Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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