Correlation Between Citigroup and PRINCIPAL
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By analyzing existing cross correlation between Citigroup and PRINCIPAL FINL GROUP, you can compare the effects of market volatilities on Citigroup and PRINCIPAL 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 PRINCIPAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PRINCIPAL.
Diversification Opportunities for Citigroup and PRINCIPAL
Pay attention - limited upside
The 3 months correlation between Citigroup and PRINCIPAL is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PRINCIPAL FINL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRINCIPAL FINL GROUP 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 PRINCIPAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRINCIPAL FINL GROUP has no effect on the direction of Citigroup i.e., Citigroup and PRINCIPAL go up and down completely randomly.
Pair Corralation between Citigroup and PRINCIPAL
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.34 times more return on investment than PRINCIPAL. However, Citigroup is 1.34 times more volatile than PRINCIPAL FINL GROUP. It trades about 0.38 of its potential returns per unit of risk. PRINCIPAL FINL GROUP is currently generating about -0.22 per unit of risk. If you would invest 7,100 in Citigroup on November 4, 2024 and sell it today you would earn a total of 1,043 from holding Citigroup or generate 14.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.0% |
| Values | Daily Returns |
Citigroup vs. PRINCIPAL FINL GROUP
Performance |
| Timeline |
| Citigroup |
| PRINCIPAL FINL GROUP |
Citigroup and PRINCIPAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PRINCIPAL
The main advantage of trading using opposite Citigroup and PRINCIPAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PRINCIPAL 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 PRINCIPAL will offset losses from the drop in PRINCIPAL's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PRINCIPAL vs. Edgewell Personal Care | PRINCIPAL vs. Beauty Health Co | PRINCIPAL vs. Virgin Group Acquisition | PRINCIPAL vs. Gladstone Investment |
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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