Correlation Between Citigroup and Usaa Intermediate
Can any of the company-specific risk be diversified away by investing in both Citigroup and Usaa Intermediate 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 Usaa Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Usaa Intermediate Term, you can compare the effects of market volatilities on Citigroup and Usaa Intermediate 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 Usaa Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Usaa Intermediate.
Diversification Opportunities for Citigroup and Usaa Intermediate
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Usaa is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Usaa Intermediate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usaa Intermediate Term 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 Usaa Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usaa Intermediate Term has no effect on the direction of Citigroup i.e., Citigroup and Usaa Intermediate go up and down completely randomly.
Pair Corralation between Citigroup and Usaa Intermediate
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.85 times more return on investment than Usaa Intermediate. However, Citigroup is 4.85 times more volatile than Usaa Intermediate Term. It trades about 0.12 of its potential returns per unit of risk. Usaa Intermediate Term is currently generating about 0.06 per unit of risk. If you would invest 4,411 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,573 from holding Citigroup or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Usaa Intermediate Term
Performance |
| Timeline |
| Citigroup |
| Usaa Intermediate Term |
Citigroup and Usaa Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Usaa Intermediate
The main advantage of trading using opposite Citigroup and Usaa Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Usaa Intermediate 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 Usaa Intermediate will offset losses from the drop in Usaa Intermediate's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Usaa Intermediate vs. Income Fund Income | Usaa Intermediate vs. Usaa Nasdaq 100 | Usaa Intermediate vs. Victory Diversified Stock | Usaa Intermediate vs. Intermediate Term Bond Fund |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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