Correlation Between Citigroup and Counterpoint Tactical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Counterpoint Tactical 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 Counterpoint Tactical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Counterpoint Tactical Municipal, you can compare the effects of market volatilities on Citigroup and Counterpoint Tactical 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 Counterpoint Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Counterpoint Tactical.
Diversification Opportunities for Citigroup and Counterpoint Tactical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Counterpoint is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Counterpoint Tactical Municipa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Counterpoint Tactical 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 Counterpoint Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Counterpoint Tactical has no effect on the direction of Citigroup i.e., Citigroup and Counterpoint Tactical go up and down completely randomly.
Pair Corralation between Citigroup and Counterpoint Tactical
Taking into account the 90-day investment horizon Citigroup is expected to generate 7.03 times more return on investment than Counterpoint Tactical. However, Citigroup is 7.03 times more volatile than Counterpoint Tactical Municipal. It trades about 0.07 of its potential returns per unit of risk. Counterpoint Tactical Municipal is currently generating about 0.07 per unit of risk. If you would invest 4,381 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,706 from holding Citigroup or generate 61.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Citigroup vs. Counterpoint Tactical Municipa
Performance |
| Timeline |
| Citigroup |
| Counterpoint Tactical |
Citigroup and Counterpoint Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Counterpoint Tactical
The main advantage of trading using opposite Citigroup and Counterpoint Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Counterpoint Tactical 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 Counterpoint Tactical will offset losses from the drop in Counterpoint Tactical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Counterpoint Tactical vs. Nasdaq 100 Index Fund | Counterpoint Tactical vs. Eic Value Fund | Counterpoint Tactical vs. Bbh Partner Fund | Counterpoint Tactical vs. Artisan Thematic Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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