Correlation Between Citigroup and Tiaa-cref Bond
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tiaa-cref Bond 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 Bond 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 Bond Fund, you can compare the effects of market volatilities on Citigroup and Tiaa-cref Bond 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 Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tiaa-cref Bond.
Diversification Opportunities for Citigroup and Tiaa-cref Bond
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Tiaa-cref is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiaa Cref Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Bond 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 Bond. 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 Bond has no effect on the direction of Citigroup i.e., Citigroup and Tiaa-cref Bond go up and down completely randomly.
Pair Corralation between Citigroup and Tiaa-cref Bond
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.08 times more return on investment than Tiaa-cref Bond. However, Citigroup is 6.08 times more volatile than Tiaa Cref Bond Fund. It trades about 0.07 of its potential returns per unit of risk. Tiaa Cref Bond Fund is currently generating about 0.1 per unit of risk. 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 | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Tiaa Cref Bond Fund
Performance |
| Timeline |
| Citigroup |
| Tiaa Cref Bond |
Citigroup and Tiaa-cref Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tiaa-cref Bond
The main advantage of trading using opposite Citigroup and Tiaa-cref Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tiaa-cref Bond 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 Bond will offset losses from the drop in Tiaa-cref Bond's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tiaa-cref Bond vs. Tiaa Cref Emerging Markets | Tiaa-cref Bond vs. Tiaa Cref Emerging Markets | Tiaa-cref Bond vs. Tiaa Cref Emerging Markets | Tiaa-cref Bond vs. Tiaa Cref Emerging Markets |
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
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |