Correlation Between Citigroup and 1290 Retirement
Can any of the company-specific risk be diversified away by investing in both Citigroup and 1290 Retirement 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 1290 Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and 1290 Retirement 2055, you can compare the effects of market volatilities on Citigroup and 1290 Retirement 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 1290 Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 1290 Retirement.
Diversification Opportunities for Citigroup and 1290 Retirement
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and 1290 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and 1290 Retirement 2055 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 1290 Retirement 2055 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 1290 Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 1290 Retirement 2055 has no effect on the direction of Citigroup i.e., Citigroup and 1290 Retirement go up and down completely randomly.
Pair Corralation between Citigroup and 1290 Retirement
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.32 times more return on investment than 1290 Retirement. However, Citigroup is 2.32 times more volatile than 1290 Retirement 2055. It trades about 0.07 of its potential returns per unit of risk. 1290 Retirement 2055 is currently generating about 0.08 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. 1290 Retirement 2055
Performance |
| Timeline |
| Citigroup |
| 1290 Retirement 2055 |
Citigroup and 1290 Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 1290 Retirement
The main advantage of trading using opposite Citigroup and 1290 Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 1290 Retirement 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 1290 Retirement will offset losses from the drop in 1290 Retirement's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 1290 Retirement vs. Ppm High Yield | 1290 Retirement vs. Ab High Income | 1290 Retirement vs. Needham Aggressive Growth | 1290 Retirement vs. Calvert High Yield |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |