Correlation Between Citigroup and Tcw Conservative
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tcw Conservative 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 Conservative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tcw Servative Allocation, you can compare the effects of market volatilities on Citigroup and Tcw Conservative 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 Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tcw Conservative.
Diversification Opportunities for Citigroup and Tcw Conservative
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Tcw is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tcw Servative Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tcw Servative Allocation 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 Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tcw Servative Allocation has no effect on the direction of Citigroup i.e., Citigroup and Tcw Conservative go up and down completely randomly.
Pair Corralation between Citigroup and Tcw Conservative
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.31 times more return on investment than Tcw Conservative. However, Citigroup is 3.31 times more volatile than Tcw Servative Allocation. It trades about 0.12 of its potential returns per unit of risk. Tcw Servative Allocation is currently generating about 0.11 per unit of risk. If you would invest 3,936 in Citigroup on August 29, 2024 and sell it today you would earn a total of 3,080 from holding Citigroup or generate 78.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Tcw Servative Allocation
Performance |
| Timeline |
| Citigroup |
| Tcw Servative Allocation |
Citigroup and Tcw Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tcw Conservative
The main advantage of trading using opposite Citigroup and Tcw Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tcw Conservative 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 Conservative will offset losses from the drop in Tcw Conservative's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tcw Conservative vs. Gmo High Yield | Tcw Conservative vs. Dunham High Yield | Tcw Conservative vs. Prudential High Yield | Tcw Conservative vs. Pia High Yield |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |