Correlation Between Citigroup and Vestis
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vestis 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 Vestis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vestis, you can compare the effects of market volatilities on Citigroup and Vestis 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 Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vestis.
Diversification Opportunities for Citigroup and Vestis
Very good diversification
The 3 months correlation between Citigroup and Vestis is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Citigroup i.e., Citigroup and Vestis go up and down completely randomly.
Pair Corralation between Citigroup and Vestis
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.53 times more return on investment than Vestis. However, Citigroup is 1.9 times less risky than Vestis. It trades about 0.19 of its potential returns per unit of risk. Vestis is currently generating about 0.07 per unit of risk. If you would invest 6,300 in Citigroup on August 23, 2024 and sell it today you would earn a total of 595.00 from holding Citigroup or generate 9.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Vestis
Performance |
| Timeline |
| Citigroup |
| Vestis |
Citigroup and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vestis
The main advantage of trading using opposite Citigroup and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| Vestis vs. Ryder System | Vestis vs. Air Lease | Vestis vs. Eshallgo Class A | Vestis vs. Willis Lease Finance |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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