Correlation Between Citigroup and Riverpark Large
Can any of the company-specific risk be diversified away by investing in both Citigroup and Riverpark Large 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 Riverpark Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Riverpark Large Growth, you can compare the effects of market volatilities on Citigroup and Riverpark Large 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 Riverpark Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Riverpark Large.
Diversification Opportunities for Citigroup and Riverpark Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Riverpark is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Riverpark Large Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riverpark Large Growth 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 Riverpark Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riverpark Large Growth has no effect on the direction of Citigroup i.e., Citigroup and Riverpark Large go up and down completely randomly.
Pair Corralation between Citigroup and Riverpark Large
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.88 times more return on investment than Riverpark Large. However, Citigroup is 2.88 times more volatile than Riverpark Large Growth. It trades about 0.26 of its potential returns per unit of risk. Riverpark Large Growth is currently generating about 0.44 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Riverpark Large Growth
Performance |
| Timeline |
| Citigroup |
| Riverpark Large Growth |
Citigroup and Riverpark Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Riverpark Large
The main advantage of trading using opposite Citigroup and Riverpark Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Riverpark Large 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 Riverpark Large will offset losses from the drop in Riverpark Large's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Riverpark Large vs. Artisan Global Opportunities | Riverpark Large vs. Grandeur Peak Global | Riverpark Large vs. Artisan Global Value | Riverpark Large vs. Tcw 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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