Correlation Between Citigroup and Tarkio Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tarkio 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 Tarkio Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tarkio Fund Tarkio, you can compare the effects of market volatilities on Citigroup and Tarkio 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 Tarkio Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tarkio Fund.
Diversification Opportunities for Citigroup and Tarkio Fund
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Tarkio is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tarkio Fund Tarkio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tarkio Fund Tarkio 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 Tarkio Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tarkio Fund Tarkio has no effect on the direction of Citigroup i.e., Citigroup and Tarkio Fund go up and down completely randomly.
Pair Corralation between Citigroup and Tarkio Fund
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.51 times less return on investment than Tarkio Fund. In addition to that, Citigroup is 1.03 times more volatile than Tarkio Fund Tarkio. It trades about 0.07 of its total potential returns per unit of risk. Tarkio Fund Tarkio is currently generating about 0.11 per unit of volatility. If you would invest 2,539 in Tarkio Fund Tarkio on September 1, 2024 and sell it today you would earn a total of 709.00 from holding Tarkio Fund Tarkio or generate 27.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Tarkio Fund Tarkio
Performance |
| Timeline |
| Citigroup |
| Tarkio Fund Tarkio |
Citigroup and Tarkio Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tarkio Fund
The main advantage of trading using opposite Citigroup and Tarkio Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tarkio 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 Tarkio Fund will offset losses from the drop in Tarkio Fund's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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