Correlation Between Citigroup and Cleartrack 2020
Can any of the company-specific risk be diversified away by investing in both Citigroup and Cleartrack 2020 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 Cleartrack 2020 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Cleartrack 2020 Class, you can compare the effects of market volatilities on Citigroup and Cleartrack 2020 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 Cleartrack 2020. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Cleartrack 2020.
Diversification Opportunities for Citigroup and Cleartrack 2020
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Cleartrack is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Cleartrack 2020 Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleartrack 2020 Class 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 Cleartrack 2020. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleartrack 2020 Class has no effect on the direction of Citigroup i.e., Citigroup and Cleartrack 2020 go up and down completely randomly.
Pair Corralation between Citigroup and Cleartrack 2020
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.77 times more return on investment than Cleartrack 2020. However, Citigroup is 1.77 times more volatile than Cleartrack 2020 Class. It trades about 0.07 of its potential returns per unit of risk. Cleartrack 2020 Class is currently generating about 0.03 per unit of risk. If you would invest 7,196 in Citigroup on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Citigroup or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Cleartrack 2020 Class
Performance |
| Timeline |
| Citigroup |
| Cleartrack 2020 Class |
Citigroup and Cleartrack 2020 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Cleartrack 2020
The main advantage of trading using opposite Citigroup and Cleartrack 2020 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Cleartrack 2020 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 Cleartrack 2020 will offset losses from the drop in Cleartrack 2020's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Cleartrack 2020 vs. Ab Small Cap | Cleartrack 2020 vs. Ab Small Cap | Cleartrack 2020 vs. Kinetics Small Cap | Cleartrack 2020 vs. Lebenthal Lisanti Small |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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