Correlation Between Citigroup and Advisorsa Inner
Can any of the company-specific risk be diversified away by investing in both Citigroup and Advisorsa Inner 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 Advisorsa Inner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The Advisorsa Inner, you can compare the effects of market volatilities on Citigroup and Advisorsa Inner 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 Advisorsa Inner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Advisorsa Inner.
Diversification Opportunities for Citigroup and Advisorsa Inner
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Advisorsa is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Advisorsa Inner in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advisorsa Inner 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 Advisorsa Inner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advisorsa Inner has no effect on the direction of Citigroup i.e., Citigroup and Advisorsa Inner go up and down completely randomly.
Pair Corralation between Citigroup and Advisorsa Inner
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.4 times more return on investment than Advisorsa Inner. However, Citigroup is 1.4 times more volatile than The Advisorsa Inner. It trades about 0.25 of its potential returns per unit of risk. The Advisorsa Inner is currently generating about -0.1 per unit of risk. If you would invest 6,902 in Citigroup on September 13, 2024 and sell it today you would earn a total of 294.00 from holding Citigroup or generate 4.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. The Advisorsa Inner
Performance |
| Timeline |
| Citigroup |
| Advisorsa Inner |
Citigroup and Advisorsa Inner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Advisorsa Inner
The main advantage of trading using opposite Citigroup and Advisorsa Inner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Advisorsa Inner 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 Advisorsa Inner will offset losses from the drop in Advisorsa Inner's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Advisorsa Inner vs. The Advisorsa Inner | Advisorsa Inner vs. Cambria Value and | Advisorsa Inner vs. Fairlead Tactical Sector | Advisorsa Inner vs. Horizon Kinetics Inflation |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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