Correlation Between Citigroup and Victory Select
Can any of the company-specific risk be diversified away by investing in both Citigroup and Victory Select 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 Victory Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Victory Select Fund, you can compare the effects of market volatilities on Citigroup and Victory Select 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 Victory Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Victory Select.
Diversification Opportunities for Citigroup and Victory Select
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Victory is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Victory Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Select 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 Victory Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Select has no effect on the direction of Citigroup i.e., Citigroup and Victory Select go up and down completely randomly.
Pair Corralation between Citigroup and Victory Select
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.84 times more return on investment than Victory Select. However, Citigroup is 2.84 times more volatile than Victory Select Fund. It trades about 0.26 of its potential returns per unit of risk. Victory Select Fund is currently generating about 0.02 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Victory Select Fund
Performance |
| Timeline |
| Citigroup |
| Victory Select |
Citigroup and Victory Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Victory Select
The main advantage of trading using opposite Citigroup and Victory Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Victory Select 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 Victory Select will offset losses from the drop in Victory Select's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Victory Select vs. Vanguard Global Ex Us | Victory Select vs. Vanguard Ftse All World | Victory Select vs. Vanguard Developed Markets | Victory Select vs. Vanguard International Dividend |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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