Correlation Between Citigroup and NATIONAL
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By analyzing existing cross correlation between Citigroup and NATIONAL RURAL UTILS, you can compare the effects of market volatilities on Citigroup and NATIONAL 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 NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and NATIONAL.
Diversification Opportunities for Citigroup and NATIONAL
Poor diversification
The 3 months correlation between Citigroup and NATIONAL is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and NATIONAL RURAL UTILS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL RURAL UTILS 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 NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL RURAL UTILS has no effect on the direction of Citigroup i.e., Citigroup and NATIONAL go up and down completely randomly.
Pair Corralation between Citigroup and NATIONAL
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.79 times more return on investment than NATIONAL. However, Citigroup is 1.27 times less risky than NATIONAL. It trades about 0.26 of its potential returns per unit of risk. NATIONAL RURAL UTILS is currently generating about -0.43 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 23.81% |
| Values | Daily Returns |
Citigroup vs. NATIONAL RURAL UTILS
Performance |
| Timeline |
| Citigroup |
| NATIONAL RURAL UTILS |
Citigroup and NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and NATIONAL
The main advantage of trading using opposite Citigroup and NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, NATIONAL 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 NATIONAL will offset losses from the drop in NATIONAL's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| NATIONAL vs. AEP TEX INC | NATIONAL vs. US BANK NATIONAL | NATIONAL vs. American Express | NATIONAL vs. Chevron Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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