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 Sector, 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
Very poor diversification
The 3 months correlation between Citigroup and QAISX is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Q3 All Weather Sector 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 generate 3.61 times more return on investment than Q3 All. However, Citigroup is 3.61 times more volatile than Q3 All Weather Sector. It trades about 0.15 of its potential returns per unit of risk. Q3 All Weather Sector is currently generating about 0.09 per unit of risk. If you would invest 6,205 in Citigroup on August 30, 2024 and sell it today you would earn a total of 811.00 from holding Citigroup or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Q3 All Weather Sector
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. Artisan Emerging Markets | Q3 All vs. Dodge Cox Emerging | Q3 All vs. Transamerica Emerging Markets | Q3 All vs. Arrow Managed Futures |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |