Correlation Between Citigroup and Guggenheim Mid
Can any of the company-specific risk be diversified away by investing in both Citigroup and Guggenheim Mid 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 Guggenheim Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guggenheim Mid Cap, you can compare the effects of market volatilities on Citigroup and Guggenheim Mid 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 Guggenheim Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guggenheim Mid.
Diversification Opportunities for Citigroup and Guggenheim Mid
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Guggenheim is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guggenheim Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Mid Cap 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 Guggenheim Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Mid Cap has no effect on the direction of Citigroup i.e., Citigroup and Guggenheim Mid go up and down completely randomly.
Pair Corralation between Citigroup and Guggenheim Mid
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.89 times more return on investment than Guggenheim Mid. However, Citigroup is 1.89 times more volatile than Guggenheim Mid Cap. It trades about 0.24 of its potential returns per unit of risk. Guggenheim Mid Cap is currently generating about 0.19 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guggenheim Mid Cap
Performance |
| Timeline |
| Citigroup |
| Guggenheim Mid Cap |
Citigroup and Guggenheim Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guggenheim Mid
The main advantage of trading using opposite Citigroup and Guggenheim Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guggenheim Mid 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 Guggenheim Mid will offset losses from the drop in Guggenheim Mid's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guggenheim Mid vs. Fidelity Low Priced Stock | Guggenheim Mid vs. Fidelity Low Priced Stock | Guggenheim Mid vs. Vanguard Mid Cap Value | Guggenheim Mid vs. John Hancock Disciplined |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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