Correlation Between Citigroup and Timothy Plan
Can any of the company-specific risk be diversified away by investing in both Citigroup and Timothy Plan 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 Timothy Plan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Timothy Plan Large, you can compare the effects of market volatilities on Citigroup and Timothy Plan 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 Timothy Plan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Timothy Plan.
Diversification Opportunities for Citigroup and Timothy Plan
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Timothy is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Timothy Plan Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Timothy Plan Large 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 Timothy Plan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Timothy Plan Large has no effect on the direction of Citigroup i.e., Citigroup and Timothy Plan go up and down completely randomly.
Pair Corralation between Citigroup and Timothy Plan
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.1 times more return on investment than Timothy Plan. However, Citigroup is 1.1 times more volatile than Timothy Plan Large. It trades about 0.21 of its potential returns per unit of risk. Timothy Plan Large is currently generating about -0.12 per unit of risk. If you would invest 7,139 in Citigroup on November 2, 2024 and sell it today you would earn a total of 1,004 from holding Citigroup or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Timothy Plan Large
Performance |
| Timeline |
| Citigroup |
| Timothy Plan Large |
Citigroup and Timothy Plan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Timothy Plan
The main advantage of trading using opposite Citigroup and Timothy Plan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Timothy Plan 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 Timothy Plan will offset losses from the drop in Timothy Plan's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Timothy Plan vs. Timothy Largemid Cap Value | Timothy Plan vs. Timothy Small Cap Value | Timothy Plan vs. Timothy Aggressive Growth | Timothy Plan vs. Timothy Plan International |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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