Correlation Between Citigroup and 1919 Financial
Can any of the company-specific risk be diversified away by investing in both Citigroup and 1919 Financial 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 1919 Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 1919 Financial Services, you can compare the effects of market volatilities on Citigroup and 1919 Financial 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 1919 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 1919 Financial.
Diversification Opportunities for Citigroup and 1919 Financial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and 1919 is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 1919 Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1919 Financial Services 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 1919 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1919 Financial Services has no effect on the direction of Citigroup i.e., Citigroup and 1919 Financial go up and down completely randomly.
Pair Corralation between Citigroup and 1919 Financial
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.4 times more return on investment than 1919 Financial. However, Citigroup is 1.4 times more volatile than 1919 Financial Services. It trades about 0.07 of its potential returns per unit of risk. 1919 Financial Services is currently generating about 0.06 per unit of risk. If you would invest 4,117 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,958 from holding Citigroup or generate 71.85% 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. 1919 Financial Services
Performance |
| Timeline |
| Citigroup |
| 1919 Financial Services |
Citigroup and 1919 Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 1919 Financial
The main advantage of trading using opposite Citigroup and 1919 Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 1919 Financial 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 1919 Financial will offset losses from the drop in 1919 Financial's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| 1919 Financial vs. Ultra Short Term Fixed | 1919 Financial vs. Ab Select Equity | 1919 Financial vs. The Hartford Equity | 1919 Financial vs. Artisan Select Equity |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |