Correlation Between Citigroup and REALTY
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By analyzing existing cross correlation between Citigroup and REALTY INCOME P, you can compare the effects of market volatilities on Citigroup and REALTY 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 REALTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and REALTY.
Diversification Opportunities for Citigroup and REALTY
Excellent diversification
The 3 months correlation between Citigroup and REALTY is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and REALTY INCOME P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REALTY INCOME P 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 REALTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REALTY INCOME P has no effect on the direction of Citigroup i.e., Citigroup and REALTY go up and down completely randomly.
Pair Corralation between Citigroup and REALTY
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.26 times more return on investment than REALTY. However, Citigroup is 1.26 times more volatile than REALTY INCOME P. It trades about 0.27 of its potential returns per unit of risk. REALTY INCOME P is currently generating about -0.03 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. REALTY INCOME P
Performance |
| Timeline |
| Citigroup |
| REALTY INCOME P |
Citigroup and REALTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and REALTY
The main advantage of trading using opposite Citigroup and REALTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, REALTY 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 REALTY will offset losses from the drop in REALTY's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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