Correlation Between Citigroup and Tocqueville Fund
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tocqueville 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 Tocqueville 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 Tocqueville Fund, you can compare the effects of market volatilities on Citigroup and Tocqueville 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 Tocqueville Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tocqueville Fund.
Diversification Opportunities for Citigroup and Tocqueville Fund
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Tocqueville is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Tocqueville Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tocqueville 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 Tocqueville Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tocqueville Fund has no effect on the direction of Citigroup i.e., Citigroup and Tocqueville Fund go up and down completely randomly.
Pair Corralation between Citigroup and Tocqueville Fund
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.17 times more return on investment than Tocqueville Fund. However, Citigroup is 3.17 times more volatile than The Tocqueville Fund. It trades about 0.26 of its potential returns per unit of risk. The Tocqueville Fund is currently generating about 0.59 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. The Tocqueville Fund
Performance |
| Timeline |
| Citigroup |
| Tocqueville Fund |
Citigroup and Tocqueville Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tocqueville Fund
The main advantage of trading using opposite Citigroup and Tocqueville Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tocqueville 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 Tocqueville Fund will offset losses from the drop in Tocqueville Fund's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tocqueville Fund vs. Equity Series Class | Tocqueville Fund vs. Large Cap Fund | Tocqueville Fund vs. The Tocqueville International | Tocqueville Fund vs. Heartland Value Plus |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |