Correlation Between Citigroup and Schwab Us
Can any of the company-specific risk be diversified away by investing in both Citigroup and Schwab Us 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 Schwab Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Schwab Treasury Money, you can compare the effects of market volatilities on Citigroup and Schwab Us 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 Schwab Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Schwab Us.
Diversification Opportunities for Citigroup and Schwab Us
Very weak diversification
The 3 months correlation between Citigroup and Schwab is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Schwab Treasury Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Treasury Money 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 Schwab Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Treasury Money has no effect on the direction of Citigroup i.e., Citigroup and Schwab Us go up and down completely randomly.
Pair Corralation between Citigroup and Schwab Us
If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Schwab Treasury Money
Performance |
| Timeline |
| Citigroup |
| Schwab Treasury Money |
Citigroup and Schwab Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Schwab Us
The main advantage of trading using opposite Citigroup and Schwab Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Schwab Us 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 Schwab Us will offset losses from the drop in Schwab Us' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Schwab Us vs. 1919 Financial Services | Schwab Us vs. Mesirow Financial Small | Schwab Us vs. Transamerica Financial Life | Schwab Us vs. Davis Financial Fund |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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