Correlation Between Citigroup and Tiaa-cref Green
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tiaa-cref Green 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 Tiaa-cref Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tiaa Cref Green Bond, you can compare the effects of market volatilities on Citigroup and Tiaa-cref Green 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 Tiaa-cref Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tiaa-cref Green.
Diversification Opportunities for Citigroup and Tiaa-cref Green
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Tiaa-cref is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiaa Cref Green Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Green 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 Tiaa-cref Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Green has no effect on the direction of Citigroup i.e., Citigroup and Tiaa-cref Green go up and down completely randomly.
Pair Corralation between Citigroup and Tiaa-cref Green
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.64 times more return on investment than Tiaa-cref Green. However, Citigroup is 7.64 times more volatile than Tiaa Cref Green Bond. It trades about 0.26 of its potential returns per unit of risk. Tiaa Cref Green Bond is currently generating about 0.09 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Tiaa Cref Green Bond
Performance |
| Timeline |
| Citigroup |
| Tiaa Cref Green |
Citigroup and Tiaa-cref Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tiaa-cref Green
The main advantage of trading using opposite Citigroup and Tiaa-cref Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tiaa-cref Green 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 Tiaa-cref Green will offset losses from the drop in Tiaa-cref Green's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tiaa-cref Green vs. Franklin Federal Limited Term | Tiaa-cref Green vs. Old Westbury Short Term | Tiaa-cref Green vs. Barings Active Short | Tiaa-cref Green vs. Federated Ultrashort Bond |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |