Correlation Between Citigroup and NewFunds Low
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By analyzing existing cross correlation between Citigroup and NewFunds Low Volatility, you can compare the effects of market volatilities on Citigroup and NewFunds Low 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 NewFunds Low. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and NewFunds Low.
Diversification Opportunities for Citigroup and NewFunds Low
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and NewFunds is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and NewFunds Low Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFunds Low Volatility 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 NewFunds Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFunds Low Volatility has no effect on the direction of Citigroup i.e., Citigroup and NewFunds Low go up and down completely randomly.
Pair Corralation between Citigroup and NewFunds Low
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.0 times more return on investment than NewFunds Low. However, Citigroup is 2.0 times more volatile than NewFunds Low Volatility. It trades about 0.12 of its potential returns per unit of risk. NewFunds Low Volatility is currently generating about 0.1 per unit of risk. If you would invest 4,004 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,200 from holding Citigroup or generate 79.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 87.61% |
| Values | Daily Returns |
Citigroup vs. NewFunds Low Volatility
Performance |
| Timeline |
| Citigroup |
| NewFunds Low Volatility |
Citigroup and NewFunds Low Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and NewFunds Low
The main advantage of trading using opposite Citigroup and NewFunds Low positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, NewFunds Low 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 NewFunds Low will offset losses from the drop in NewFunds Low's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| NewFunds Low vs. NewFunds GOVI Exchange | NewFunds Low vs. NewFunds Shariah Top | NewFunds Low vs. NewFunds MAPPS Growth | NewFunds Low vs. NewFunds TRACI 3 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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