Correlation Between Citigroup and Qs Sp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Qs Sp 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 Qs Sp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Qs Sp 500, you can compare the effects of market volatilities on Citigroup and Qs Sp 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 Qs Sp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Qs Sp.
Diversification Opportunities for Citigroup and Qs Sp
Very poor diversification
The 3 months correlation between Citigroup and SBSDX is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Qs Sp 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Sp 500 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 Qs Sp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Sp 500 has no effect on the direction of Citigroup i.e., Citigroup and Qs Sp go up and down completely randomly.
Pair Corralation between Citigroup and Qs Sp
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.06 times more return on investment than Qs Sp. However, Citigroup is 2.06 times more volatile than Qs Sp 500. It trades about 0.08 of its potential returns per unit of risk. Qs Sp 500 is currently generating about 0.13 per unit of risk. If you would invest 4,347 in Citigroup on August 24, 2024 and sell it today you would earn a total of 2,637 from holding Citigroup or generate 60.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Qs Sp 500
Performance |
| Timeline |
| Citigroup |
| Qs Sp 500 |
Citigroup and Qs Sp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Qs Sp
The main advantage of trading using opposite Citigroup and Qs Sp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Qs Sp 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 Qs Sp will offset losses from the drop in Qs Sp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Qs Sp vs. Ppm High Yield | Qs Sp vs. Lord Abbett High | Qs Sp vs. Artisan High Income | Qs Sp vs. Guggenheim High Yield |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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