Correlation Between Citigroup and Timbercreek Financial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Timbercreek Financial 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 Timbercreek Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Timbercreek Financial Corp, you can compare the effects of market volatilities on Citigroup and Timbercreek Financial 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 Timbercreek Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Timbercreek Financial.
Diversification Opportunities for Citigroup and Timbercreek Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Timbercreek is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Timbercreek Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timbercreek Financial 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 Timbercreek Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timbercreek Financial has no effect on the direction of Citigroup i.e., Citigroup and Timbercreek Financial go up and down completely randomly.
Pair Corralation between Citigroup and Timbercreek Financial
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.51 times more return on investment than Timbercreek Financial. However, Citigroup is 1.51 times more volatile than Timbercreek Financial Corp. It trades about 0.15 of its potential returns per unit of risk. Timbercreek Financial Corp is currently generating about -0.08 per unit of risk. If you would invest 6,205 in Citigroup on August 30, 2024 and sell it today you would earn a total of 811.00 from holding Citigroup or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Citigroup vs. Timbercreek Financial Corp
Performance |
| Timeline |
| Citigroup |
| Timbercreek Financial |
Citigroup and Timbercreek Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Timbercreek Financial
The main advantage of trading using opposite Citigroup and Timbercreek Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Timbercreek Financial 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 Timbercreek Financial will offset losses from the drop in Timbercreek Financial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Timbercreek Financial vs. Atrium Mortgage Investment | Timbercreek Financial vs. MCAN Mortgage | Timbercreek Financial vs. Fiera Capital | Timbercreek Financial vs. Firm Capital Mortgage |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |