Correlation Between Citigroup and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allianzgi Technology 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 Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allianzgi Technology Fund, you can compare the effects of market volatilities on Citigroup and Allianzgi Technology 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 Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allianzgi Technology.
Diversification Opportunities for Citigroup and Allianzgi Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Allianzgi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology 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 Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Citigroup and Allianzgi Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.68 times more return on investment than Allianzgi Technology. However, Citigroup is 1.68 times more volatile than Allianzgi Technology Fund. It trades about 0.16 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.12 per unit of risk. If you would invest 6,083 in Citigroup on August 25, 2024 and sell it today you would earn a total of 901.00 from holding Citigroup or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Citigroup |
| Allianzgi Technology |
Citigroup and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allianzgi Technology
The main advantage of trading using opposite Citigroup and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allianzgi Technology 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Aquagold International | Allianzgi Technology vs. Morningstar Unconstrained Allocation |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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