Correlation Between Citigroup and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Saba Capital 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 Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Saba Capital Income, you can compare the effects of market volatilities on Citigroup and Saba Capital 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 Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Saba Capital.
Diversification Opportunities for Citigroup and Saba Capital
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Saba is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income 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 Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Citigroup i.e., Citigroup and Saba Capital go up and down completely randomly.
Pair Corralation between Citigroup and Saba Capital
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.56 times less return on investment than Saba Capital. In addition to that, Citigroup is 1.78 times more volatile than Saba Capital Income. It trades about 0.2 of its total potential returns per unit of risk. Saba Capital Income is currently generating about 0.55 per unit of volatility. If you would invest 858.00 in Saba Capital Income on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Saba Capital Income or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Saba Capital Income
Performance |
| Timeline |
| Citigroup |
| Saba Capital Income |
Citigroup and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Saba Capital
The main advantage of trading using opposite Citigroup and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Saba Capital vs. FT Vest Equity | Saba Capital vs. Zillow Group Class | Saba Capital vs. Northern Lights | Saba Capital vs. VanEck Vectors Moodys |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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