Correlation Between Citigroup and Sei Daily
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sei Daily 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 Sei Daily into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sei Daily Income, you can compare the effects of market volatilities on Citigroup and Sei Daily 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 Sei Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sei Daily.
Diversification Opportunities for Citigroup and Sei Daily
Average diversification
The 3 months correlation between Citigroup and Sei is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sei Daily Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sei Daily 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 Sei Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sei Daily Income has no effect on the direction of Citigroup i.e., Citigroup and Sei Daily go up and down completely randomly.
Pair Corralation between Citigroup and Sei Daily
Taking into account the 90-day investment horizon Citigroup is expected to generate 12.84 times more return on investment than Sei Daily. However, Citigroup is 12.84 times more volatile than Sei Daily Income. It trades about 0.11 of its potential returns per unit of risk. Sei Daily Income is currently generating about 0.13 per unit of risk. If you would invest 4,676 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,411 from holding Citigroup or generate 51.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Sei Daily Income
Performance |
| Timeline |
| Citigroup |
| Sei Daily Income |
Citigroup and Sei Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sei Daily
The main advantage of trading using opposite Citigroup and Sei Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sei Daily 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 Sei Daily will offset losses from the drop in Sei Daily's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Sei Daily vs. Vanguard Total Stock | Sei Daily vs. Vanguard 500 Index | Sei Daily vs. Vanguard Total Stock | Sei Daily vs. Vanguard Total Stock |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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