Correlation Between Citigroup and Tax-exempt Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tax-exempt Fund 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 Tax-exempt Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tax Exempt Fund Of, you can compare the effects of market volatilities on Citigroup and Tax-exempt Fund 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 Tax-exempt Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tax-exempt Fund.
Diversification Opportunities for Citigroup and Tax-exempt Fund
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Tax-exempt is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tax Exempt Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tax Exempt Fund 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 Tax-exempt Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tax Exempt Fund has no effect on the direction of Citigroup i.e., Citigroup and Tax-exempt Fund go up and down completely randomly.
Pair Corralation between Citigroup and Tax-exempt Fund
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.24 times more return on investment than Tax-exempt Fund. However, Citigroup is 7.24 times more volatile than Tax Exempt Fund Of. It trades about 0.26 of its potential returns per unit of risk. Tax Exempt Fund Of is currently generating about 0.19 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Tax Exempt Fund Of
Performance |
| Timeline |
| Citigroup |
| Tax Exempt Fund |
Citigroup and Tax-exempt Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tax-exempt Fund
The main advantage of trading using opposite Citigroup and Tax-exempt Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tax-exempt Fund 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 Tax-exempt Fund will offset losses from the drop in Tax-exempt Fund's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tax-exempt Fund vs. Income Fund Of | Tax-exempt Fund vs. New World Fund | Tax-exempt Fund vs. American Mutual Fund | Tax-exempt Fund vs. American Mutual 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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