Correlation Between Citigroup and Urbanfund Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Urbanfund Corp 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 Urbanfund Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Urbanfund Corp, you can compare the effects of market volatilities on Citigroup and Urbanfund Corp 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 Urbanfund Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Urbanfund Corp.
Diversification Opportunities for Citigroup and Urbanfund Corp
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Urbanfund is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Urbanfund Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbanfund Corp 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 Urbanfund Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbanfund Corp has no effect on the direction of Citigroup i.e., Citigroup and Urbanfund Corp go up and down completely randomly.
Pair Corralation between Citigroup and Urbanfund Corp
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.72 times more return on investment than Urbanfund Corp. However, Citigroup is 1.39 times less risky than Urbanfund Corp. It trades about 0.08 of its potential returns per unit of risk. Urbanfund Corp is currently generating about 0.0 per unit of risk. If you would invest 5,464 in Citigroup on August 29, 2024 and sell it today you would earn a total of 1,552 from holding Citigroup or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Urbanfund Corp
Performance |
| Timeline |
| Citigroup |
| Urbanfund Corp |
Citigroup and Urbanfund Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Urbanfund Corp
The main advantage of trading using opposite Citigroup and Urbanfund Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Urbanfund Corp 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 Urbanfund Corp will offset losses from the drop in Urbanfund Corp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Urbanfund Corp vs. SmartCentres Real Estate | Urbanfund Corp vs. Dream Industrial Real | Urbanfund Corp vs. RioCan Real Estate | Urbanfund Corp vs. Algonquin Power Utilities |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |