Correlation Between Citigroup and Q3 All
Can any of the company-specific risk be diversified away by investing in both Citigroup and Q3 All 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 Q3 All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Q3 All Weather Tactical, you can compare the effects of market volatilities on Citigroup and Q3 All 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 Q3 All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Q3 All.
Diversification Opportunities for Citigroup and Q3 All
Good diversification
The 3 months correlation between Citigroup and QACTX is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Q3 All Weather Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Q3 All Weather 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 Q3 All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Q3 All Weather has no effect on the direction of Citigroup i.e., Citigroup and Q3 All go up and down completely randomly.
Pair Corralation between Citigroup and Q3 All
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Q3 All. In addition to that, Citigroup is 2.08 times more volatile than Q3 All Weather Tactical. It trades about -0.08 of its total potential returns per unit of risk. Q3 All Weather Tactical is currently generating about -0.08 per unit of volatility. If you would invest 1,064 in Q3 All Weather Tactical on November 28, 2024 and sell it today you would lose (14.00) from holding Q3 All Weather Tactical or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Q3 All Weather Tactical
Performance |
| Timeline |
| Citigroup |
| Q3 All Weather |
Citigroup and Q3 All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Q3 All
The main advantage of trading using opposite Citigroup and Q3 All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Q3 All 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 Q3 All will offset losses from the drop in Q3 All's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Q3 All vs. Us Government Securities | Q3 All vs. Us Government Securities | Q3 All vs. Fidelity Series Government | Q3 All vs. Franklin Adjustable Government |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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