Correlation Between Citigroup and Core Fixed
Can any of the company-specific risk be diversified away by investing in both Citigroup and Core Fixed 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 Core Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Core Fixed Income, you can compare the effects of market volatilities on Citigroup and Core Fixed 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 Core Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Core Fixed.
Diversification Opportunities for Citigroup and Core Fixed
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Core is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Core Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Fixed Income 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 Core Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Fixed Income has no effect on the direction of Citigroup i.e., Citigroup and Core Fixed go up and down completely randomly.
Pair Corralation between Citigroup and Core Fixed
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.65 times more return on investment than Core Fixed. However, Citigroup is 5.65 times more volatile than Core Fixed Income. It trades about 0.06 of its potential returns per unit of risk. Core Fixed Income is currently generating about 0.08 per unit of risk. If you would invest 6,131 in Citigroup on August 26, 2024 and sell it today you would earn a total of 853.00 from holding Citigroup or generate 13.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Core Fixed Income
Performance |
| Timeline |
| Citigroup |
| Core Fixed Income |
Citigroup and Core Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Core Fixed
The main advantage of trading using opposite Citigroup and Core Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Core Fixed 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 Core Fixed will offset losses from the drop in Core Fixed's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Core Fixed vs. Blackrock Health Sciences | Core Fixed vs. Baron Health Care | Core Fixed vs. Lord Abbett Health | Core Fixed vs. Health Biotchnology Portfolio |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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