Correlation Between Citigroup and Touchstone Sustainability
Can any of the company-specific risk be diversified away by investing in both Citigroup and Touchstone Sustainability 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 Touchstone Sustainability into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Touchstone Sustainability And, you can compare the effects of market volatilities on Citigroup and Touchstone Sustainability 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 Touchstone Sustainability. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Touchstone Sustainability.
Diversification Opportunities for Citigroup and Touchstone Sustainability
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Touchstone is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Touchstone Sustainability And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Sustainability 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 Touchstone Sustainability. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Sustainability has no effect on the direction of Citigroup i.e., Citigroup and Touchstone Sustainability go up and down completely randomly.
Pair Corralation between Citigroup and Touchstone Sustainability
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.82 times more return on investment than Touchstone Sustainability. However, Citigroup is 1.82 times more volatile than Touchstone Sustainability And. It trades about 0.07 of its potential returns per unit of risk. Touchstone Sustainability And is currently generating about 0.05 per unit of risk. If you would invest 4,206 in Citigroup on August 24, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Touchstone Sustainability And
Performance |
| Timeline |
| Citigroup |
| Touchstone Sustainability |
Citigroup and Touchstone Sustainability Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Touchstone Sustainability
The main advantage of trading using opposite Citigroup and Touchstone Sustainability positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Touchstone Sustainability 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 Touchstone Sustainability will offset losses from the drop in Touchstone Sustainability's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Touchstone Sustainability vs. Artisan Developing World | Touchstone Sustainability vs. Artisan High Income | Touchstone Sustainability vs. HUMANA INC | Touchstone Sustainability vs. Aquagold International |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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