Correlation Between Citigroup and Savers Value
Can any of the company-specific risk be diversified away by investing in both Citigroup and Savers Value 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 Savers Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Savers Value Village,, you can compare the effects of market volatilities on Citigroup and Savers Value 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 Savers Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Savers Value.
Diversification Opportunities for Citigroup and Savers Value
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Savers is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Savers Value Village, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savers Value Village, 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 Savers Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savers Value Village, has no effect on the direction of Citigroup i.e., Citigroup and Savers Value go up and down completely randomly.
Pair Corralation between Citigroup and Savers Value
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.54 times more return on investment than Savers Value. However, Citigroup is 1.86 times less risky than Savers Value. It trades about 0.21 of its potential returns per unit of risk. Savers Value Village, is currently generating about -0.06 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Savers Value Village,
Performance |
| Timeline |
| Citigroup |
| Savers Value Village, |
Citigroup and Savers Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Savers Value
The main advantage of trading using opposite Citigroup and Savers Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Savers Value 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 Savers Value will offset losses from the drop in Savers Value's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Savers Value vs. American Axle Manufacturing | Savers Value vs. Visteon Corp | Savers Value vs. PACCAR Inc | Savers Value vs. SEI Investments |
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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