Correlation Between Citigroup and Rbc Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rbc Global 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 Rbc Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rbc Global Opportunities, you can compare the effects of market volatilities on Citigroup and Rbc Global 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 Rbc Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rbc Global.
Diversification Opportunities for Citigroup and Rbc Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Rbc is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rbc Global Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rbc Global Opportunities 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 Rbc Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rbc Global Opportunities has no effect on the direction of Citigroup i.e., Citigroup and Rbc Global go up and down completely randomly.
Pair Corralation between Citigroup and Rbc Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.44 times more return on investment than Rbc Global. However, Citigroup is 2.44 times more volatile than Rbc Global Opportunities. It trades about 0.07 of its potential returns per unit of risk. Rbc Global Opportunities 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 Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Rbc Global Opportunities
Performance |
| Timeline |
| Citigroup |
| Rbc Global Opportunities |
Citigroup and Rbc Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rbc Global
The main advantage of trading using opposite Citigroup and Rbc Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rbc Global 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 Rbc Global will offset losses from the drop in Rbc Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rbc Global vs. Rbc Small Cap | Rbc Global vs. Rbc Enterprise Fund | Rbc Global vs. Rbc Enterprise Fund | Rbc Global vs. Rbc Emerging Markets |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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