Correlation Between Citigroup and Tcw Core
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tcw Core 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 Tcw Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tcw Core Fixed, you can compare the effects of market volatilities on Citigroup and Tcw Core 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 Tcw Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tcw Core.
Diversification Opportunities for Citigroup and Tcw Core
Pay attention - limited upside
The 3 months correlation between Citigroup and Tcw is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tcw Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcw Core Fixed 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 Tcw Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcw Core Fixed has no effect on the direction of Citigroup i.e., Citigroup and Tcw Core go up and down completely randomly.
Pair Corralation between Citigroup and Tcw Core
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.53 times more return on investment than Tcw Core. However, Citigroup is 3.53 times more volatile than Tcw Core Fixed. It trades about 0.07 of its potential returns per unit of risk. Tcw Core Fixed is currently generating about 0.03 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Tcw Core Fixed
Performance |
| Timeline |
| Citigroup |
| Tcw Core Fixed |
Citigroup and Tcw Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tcw Core
The main advantage of trading using opposite Citigroup and Tcw Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tcw Core 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 Tcw Core will offset losses from the drop in Tcw Core's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tcw Core vs. Calvert Global Energy | Tcw Core vs. Tortoise Energy Independence | Tcw Core vs. Dreyfus Natural Resources | Tcw Core vs. Ivy Natural Resources |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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