Correlation Between Citigroup and Tuxis
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tuxis 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 Tuxis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tuxis, you can compare the effects of market volatilities on Citigroup and Tuxis 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 Tuxis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tuxis.
Diversification Opportunities for Citigroup and Tuxis
Pay attention - limited upside
The 3 months correlation between Citigroup and Tuxis is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tuxis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuxis 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 Tuxis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuxis has no effect on the direction of Citigroup i.e., Citigroup and Tuxis go up and down completely randomly.
Pair Corralation between Citigroup and Tuxis
If you would invest 4,558 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,529 from holding Citigroup or generate 55.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Citigroup vs. Tuxis
Performance |
| Timeline |
| Citigroup |
| Tuxis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Tuxis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tuxis
The main advantage of trading using opposite Citigroup and Tuxis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tuxis 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 Tuxis will offset losses from the drop in Tuxis' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Tuxis vs. Franklin Wireless Corp | Tuxis vs. Acco Brands | Tuxis vs. Royalty Management Holding | Tuxis vs. Sandstorm Gold Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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