Correlation Between Citigroup and 31429KAD5
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By analyzing existing cross correlation between Citigroup and CCDJ 205 10 FEB 25, you can compare the effects of market volatilities on Citigroup and 31429KAD5 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 31429KAD5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and 31429KAD5.
Diversification Opportunities for Citigroup and 31429KAD5
Average diversification
The 3 months correlation between Citigroup and 31429KAD5 is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and CCDJ 205 10 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCDJ 205 10 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 31429KAD5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCDJ 205 10 has no effect on the direction of Citigroup i.e., Citigroup and 31429KAD5 go up and down completely randomly.
Pair Corralation between Citigroup and 31429KAD5
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.16 times more return on investment than 31429KAD5. However, Citigroup is 4.16 times more volatile than CCDJ 205 10 FEB 25. It trades about 0.07 of its potential returns per unit of risk. CCDJ 205 10 FEB 25 is currently generating about 0.01 per unit of risk. If you would invest 4,134 in Citigroup on August 30, 2024 and sell it today you would earn a total of 2,882 from holding Citigroup or generate 69.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 41.41% |
| Values | Daily Returns |
Citigroup vs. CCDJ 205 10 FEB 25
Performance |
| Timeline |
| Citigroup |
| CCDJ 205 10 |
Citigroup and 31429KAD5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and 31429KAD5
The main advantage of trading using opposite Citigroup and 31429KAD5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, 31429KAD5 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 31429KAD5 will offset losses from the drop in 31429KAD5's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| 31429KAD5 vs. AEP TEX INC | 31429KAD5 vs. US BANK NATIONAL | 31429KAD5 vs. PayPal Holdings | 31429KAD5 vs. IONQ Inc |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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