Correlation Between Citigroup and Pacer Financial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Pacer Financial 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 Pacer Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Pacer Financial, you can compare the effects of market volatilities on Citigroup and Pacer Financial 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 Pacer Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pacer Financial.
Diversification Opportunities for Citigroup and Pacer Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Pacer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pacer Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacer Financial 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 Pacer Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacer Financial has no effect on the direction of Citigroup i.e., Citigroup and Pacer Financial go up and down completely randomly.
Pair Corralation between Citigroup and Pacer Financial
If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Pacer Financial
Performance |
| Timeline |
| Citigroup |
| Pacer Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Pacer Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pacer Financial
The main advantage of trading using opposite Citigroup and Pacer Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pacer Financial 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 Pacer Financial will offset losses from the drop in Pacer Financial's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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