Correlation Between Citigroup and RBB Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and RBB Fund 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 RBB Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The RBB Fund, you can compare the effects of market volatilities on Citigroup and RBB Fund 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 RBB Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and RBB Fund.
Diversification Opportunities for Citigroup and RBB Fund
Very weak diversification
The 3 months correlation between Citigroup and RBB is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The RBB Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBB Fund 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 RBB Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBB Fund has no effect on the direction of Citigroup i.e., Citigroup and RBB Fund go up and down completely randomly.
Pair Corralation between Citigroup and RBB Fund
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the RBB Fund. In addition to that, Citigroup is 2.44 times more volatile than The RBB Fund. It trades about -0.2 of its total potential returns per unit of risk. The RBB Fund is currently generating about -0.3 per unit of volatility. If you would invest 2,718 in The RBB Fund on December 5, 2024 and sell it today you would lose (152.00) from holding The RBB Fund or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. The RBB Fund
Performance |
| Timeline |
| Citigroup |
| RBB Fund |
Citigroup and RBB Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and RBB Fund
The main advantage of trading using opposite Citigroup and RBB Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, RBB Fund 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 RBB Fund will offset losses from the drop in RBB Fund's long position.| Citigroup vs. JPMorgan Chase Co | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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