Correlation Between Citigroup and Blackrock Lifepath
Can any of the company-specific risk be diversified away by investing in both Citigroup and Blackrock Lifepath 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 Blackrock Lifepath into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Blackrock Lifepath Dynamic, you can compare the effects of market volatilities on Citigroup and Blackrock Lifepath 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 Blackrock Lifepath. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Blackrock Lifepath.
Diversification Opportunities for Citigroup and Blackrock Lifepath
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Blackrock is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Blackrock Lifepath Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Lifepath 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 Blackrock Lifepath. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Lifepath has no effect on the direction of Citigroup i.e., Citigroup and Blackrock Lifepath go up and down completely randomly.
Pair Corralation between Citigroup and Blackrock Lifepath
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.19 times more return on investment than Blackrock Lifepath. However, Citigroup is 6.19 times more volatile than Blackrock Lifepath Dynamic. It trades about 0.23 of its potential returns per unit of risk. Blackrock Lifepath Dynamic is currently generating about 0.03 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Blackrock Lifepath Dynamic
Performance |
| Timeline |
| Citigroup |
| Blackrock Lifepath |
Citigroup and Blackrock Lifepath Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Blackrock Lifepath
The main advantage of trading using opposite Citigroup and Blackrock Lifepath positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Blackrock Lifepath 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 Blackrock Lifepath will offset losses from the drop in Blackrock Lifepath's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Blackrock Lifepath vs. T Rowe Price | Blackrock Lifepath vs. Rational Defensive Growth | Blackrock Lifepath vs. Chase Growth Fund | Blackrock Lifepath vs. Ab Centrated Growth |
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 CEOs Directory module to screen CEOs from public companies around the world.
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