Correlation Between Citigroup and Invesco Treasury
Can any of the company-specific risk be diversified away by investing in both Citigroup and Invesco Treasury 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 Invesco Treasury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Invesco Treasury Bond, you can compare the effects of market volatilities on Citigroup and Invesco Treasury 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 Invesco Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Invesco Treasury.
Diversification Opportunities for Citigroup and Invesco Treasury
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Invesco is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Invesco Treasury Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Treasury Bond 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 Invesco Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Treasury Bond has no effect on the direction of Citigroup i.e., Citigroup and Invesco Treasury go up and down completely randomly.
Pair Corralation between Citigroup and Invesco Treasury
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.15 times more return on investment than Invesco Treasury. However, Citigroup is 6.15 times more volatile than Invesco Treasury Bond. It trades about 0.21 of its potential returns per unit of risk. Invesco Treasury Bond is currently generating about 0.02 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Invesco Treasury Bond
Performance |
| Timeline |
| Citigroup |
| Invesco Treasury Bond |
Citigroup and Invesco Treasury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Invesco Treasury
The main advantage of trading using opposite Citigroup and Invesco Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Invesco Treasury 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 Invesco Treasury will offset losses from the drop in Invesco Treasury's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Invesco Treasury vs. Leverage Shares 3x | Invesco Treasury vs. GraniteShares 3x Short | Invesco Treasury vs. WisdomTree Natural Gas | Invesco Treasury vs. WisdomTree Natural Gas |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |