Correlation Between Citigroup and IShares Nasdaq
Can any of the company-specific risk be diversified away by investing in both Citigroup and IShares Nasdaq 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 IShares Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and iShares Nasdaq 100 ex, you can compare the effects of market volatilities on Citigroup and IShares Nasdaq 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 IShares Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and IShares Nasdaq.
Diversification Opportunities for Citigroup and IShares Nasdaq
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and IShares is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and iShares Nasdaq 100 ex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Nasdaq 100 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 IShares Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Nasdaq 100 has no effect on the direction of Citigroup i.e., Citigroup and IShares Nasdaq go up and down completely randomly.
Pair Corralation between Citigroup and IShares Nasdaq
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.16 times less return on investment than IShares Nasdaq. In addition to that, Citigroup is 1.94 times more volatile than iShares Nasdaq 100 ex. It trades about 0.07 of its total potential returns per unit of risk. iShares Nasdaq 100 ex is currently generating about 0.16 per unit of volatility. If you would invest 2,483 in iShares Nasdaq 100 ex on September 1, 2024 and sell it today you would earn a total of 108.00 from holding iShares Nasdaq 100 ex or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.43% |
| Values | Daily Returns |
Citigroup vs. iShares Nasdaq 100 ex
Performance |
| Timeline |
| Citigroup |
| iShares Nasdaq 100 |
Citigroup and IShares Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and IShares Nasdaq
The main advantage of trading using opposite Citigroup and IShares Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, IShares Nasdaq 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 IShares Nasdaq will offset losses from the drop in IShares Nasdaq's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| IShares Nasdaq vs. Vanguard Growth Index | IShares Nasdaq vs. iShares Russell 1000 | IShares Nasdaq vs. iShares SP 500 | IShares Nasdaq vs. iShares Core SP |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |