Correlation Between Citigroup and Vanguard Canadian
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vanguard Canadian 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 Vanguard Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vanguard Canadian Short Term, you can compare the effects of market volatilities on Citigroup and Vanguard Canadian 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 Vanguard Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vanguard Canadian.
Diversification Opportunities for Citigroup and Vanguard Canadian
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Vanguard is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vanguard Canadian Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Canadian Short 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 Vanguard Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Canadian Short has no effect on the direction of Citigroup i.e., Citigroup and Vanguard Canadian go up and down completely randomly.
Pair Corralation between Citigroup and Vanguard Canadian
Taking into account the 90-day investment horizon Citigroup is expected to generate 11.54 times more return on investment than Vanguard Canadian. However, Citigroup is 11.54 times more volatile than Vanguard Canadian Short Term. It trades about 0.09 of its potential returns per unit of risk. Vanguard Canadian Short Term is currently generating about 0.2 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Vanguard Canadian Short Term
Performance |
| Timeline |
| Citigroup |
| Vanguard Canadian Short |
Citigroup and Vanguard Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vanguard Canadian
The main advantage of trading using opposite Citigroup and Vanguard Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vanguard Canadian 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 Vanguard Canadian will offset losses from the drop in Vanguard Canadian's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Vanguard Canadian vs. Vanguard Canadian Short | Vanguard Canadian vs. Global X Active | Vanguard Canadian vs. Invesco 1 5 Year | Vanguard Canadian vs. iShares Canadian HYBrid |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |