Correlation Between Citigroup and Mfs Intrinsic
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mfs Intrinsic 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 Mfs Intrinsic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mfs Intrinsic Value, you can compare the effects of market volatilities on Citigroup and Mfs Intrinsic 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 Mfs Intrinsic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mfs Intrinsic.
Diversification Opportunities for Citigroup and Mfs Intrinsic
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Mfs is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mfs Intrinsic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Intrinsic Value 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 Mfs Intrinsic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Intrinsic Value has no effect on the direction of Citigroup i.e., Citigroup and Mfs Intrinsic go up and down completely randomly.
Pair Corralation between Citigroup and Mfs Intrinsic
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.91 times more return on investment than Mfs Intrinsic. However, Citigroup is 1.91 times more volatile than Mfs Intrinsic Value. It trades about 0.07 of its potential returns per unit of risk. Mfs Intrinsic Value is currently generating about 0.08 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Mfs Intrinsic Value
Performance |
| Timeline |
| Citigroup |
| Mfs Intrinsic Value |
Citigroup and Mfs Intrinsic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mfs Intrinsic
The main advantage of trading using opposite Citigroup and Mfs Intrinsic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mfs Intrinsic 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 Mfs Intrinsic will offset losses from the drop in Mfs Intrinsic's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mfs Intrinsic vs. Western Asset Diversified | Mfs Intrinsic vs. Aqr Diversified Arbitrage | Mfs Intrinsic vs. Pgim Conservative Retirement | Mfs Intrinsic vs. Huber Capital Diversified |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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