Correlation Between Citigroup and Voya High
Can any of the company-specific risk be diversified away by investing in both Citigroup and Voya High 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 Voya High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Voya High Yield, you can compare the effects of market volatilities on Citigroup and Voya High 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 Voya High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Voya High.
Diversification Opportunities for Citigroup and Voya High
Poor diversification
The 3 months correlation between Citigroup and Voya is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Voya High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya High Yield 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 Voya High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya High Yield has no effect on the direction of Citigroup i.e., Citigroup and Voya High go up and down completely randomly.
Pair Corralation between Citigroup and Voya High
Taking into account the 90-day investment horizon Citigroup is expected to generate 14.81 times more return on investment than Voya High. However, Citigroup is 14.81 times more volatile than Voya High Yield. It trades about 0.32 of its potential returns per unit of risk. Voya High Yield is currently generating about 0.15 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Voya High Yield
Performance |
| Timeline |
| Citigroup |
| Voya High Yield |
Citigroup and Voya High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Voya High
The main advantage of trading using opposite Citigroup and Voya High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Voya High 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 Voya High will offset losses from the drop in Voya High's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Voya High vs. Bbh Intermediate Municipal | Voya High vs. Blrc Sgy Mnp | Voya High vs. Limited Term Tax | Voya High vs. Ambrus Core Bond |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |