Correlation Between Citigroup and Transamerica Event
Can any of the company-specific risk be diversified away by investing in both Citigroup and Transamerica Event 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 Transamerica Event into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Transamerica Event Driven, you can compare the effects of market volatilities on Citigroup and Transamerica Event 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 Transamerica Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Transamerica Event.
Diversification Opportunities for Citigroup and Transamerica Event
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Transamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Transamerica Event Driven in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Event Driven 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 Transamerica Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Event Driven has no effect on the direction of Citigroup i.e., Citigroup and Transamerica Event go up and down completely randomly.
Pair Corralation between Citigroup and Transamerica Event
If you would invest 4,642 in Citigroup on September 5, 2024 and sell it today you would earn a total of 2,500 from holding Citigroup or generate 53.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Transamerica Event Driven
Performance |
| Timeline |
| Citigroup |
| Transamerica Event Driven |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Transamerica Event Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Transamerica Event
The main advantage of trading using opposite Citigroup and Transamerica Event positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Transamerica Event 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 Transamerica Event will offset losses from the drop in Transamerica Event's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Transamerica Event vs. T Rowe Price | Transamerica Event vs. T Rowe Price | Transamerica Event vs. John Hancock Funds | Transamerica Event vs. T Rowe Price |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |