Correlation Between Citigroup and Tcw Developing
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tcw Developing 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 Developing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tcw Developing Markets, you can compare the effects of market volatilities on Citigroup and Tcw Developing 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 Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tcw Developing.
Diversification Opportunities for Citigroup and Tcw Developing
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Tcw is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tcw Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcw Developing Markets 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 Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcw Developing Markets has no effect on the direction of Citigroup i.e., Citigroup and Tcw Developing go up and down completely randomly.
Pair Corralation between Citigroup and Tcw Developing
If you would invest 6,079 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,008 from holding Citigroup or generate 16.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Citigroup vs. Tcw Developing Markets
Performance |
| Timeline |
| Citigroup |
| Tcw Developing Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Tcw Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tcw Developing
The main advantage of trading using opposite Citigroup and Tcw Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tcw Developing 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 Developing will offset losses from the drop in Tcw Developing's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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