Correlation Between Citigroup and Money Market
Can any of the company-specific risk be diversified away by investing in both Citigroup and Money Market 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 Money Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Money Market Obligations, you can compare the effects of market volatilities on Citigroup and Money Market 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 Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Money Market.
Diversification Opportunities for Citigroup and Money Market
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Money is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations 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 Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Citigroup i.e., Citigroup and Money Market go up and down completely randomly.
Pair Corralation between Citigroup and Money Market
If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 35.0% |
| Values | Daily Returns |
Citigroup vs. Money Market Obligations
Performance |
| Timeline |
| Citigroup |
| Money Market Obligations |
Citigroup and Money Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Money Market
The main advantage of trading using opposite Citigroup and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Money Market vs. Western Asset Inflation | Money Market vs. Cref Inflation Linked Bond | Money Market vs. Ab Bond Inflation | Money Market vs. Oklahoma College Savings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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