Correlation Between Citigroup and AB Active
Can any of the company-specific risk be diversified away by investing in both Citigroup and AB Active 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 AB Active into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AB Active ETFs,, you can compare the effects of market volatilities on Citigroup and AB Active 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 AB Active. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AB Active.
Diversification Opportunities for Citigroup and AB Active
Very good diversification
The 3 months correlation between Citigroup and TAFL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AB Active ETFs, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AB Active ETFs, 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 AB Active. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AB Active ETFs, has no effect on the direction of Citigroup i.e., Citigroup and AB Active go up and down completely randomly.
Pair Corralation between Citigroup and AB Active
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.99 times more return on investment than AB Active. However, Citigroup is 5.99 times more volatile than AB Active ETFs,. It trades about 0.09 of its potential returns per unit of risk. AB Active ETFs, is currently generating about 0.06 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. AB Active ETFs,
Performance |
| Timeline |
| Citigroup |
| AB Active ETFs, |
Citigroup and AB Active Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AB Active
The main advantage of trading using opposite Citigroup and AB Active positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AB Active 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 AB Active will offset losses from the drop in AB Active's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AB Active vs. VanEck Intermediate Muni | AB Active vs. VanEck Short Muni | AB Active vs. SPDR Nuveen Bloomberg | AB Active vs. Invesco New York |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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