Correlation Between Citigroup and Wasatch E
Can any of the company-specific risk be diversified away by investing in both Citigroup and Wasatch E 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 Wasatch E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Wasatch E Growth, you can compare the effects of market volatilities on Citigroup and Wasatch E 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 Wasatch E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wasatch E.
Diversification Opportunities for Citigroup and Wasatch E
Almost no diversification
The 3 months correlation between Citigroup and Wasatch is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wasatch E Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch E Growth 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 Wasatch E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch E Growth has no effect on the direction of Citigroup i.e., Citigroup and Wasatch E go up and down completely randomly.
Pair Corralation between Citigroup and Wasatch E
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.24 times less return on investment than Wasatch E. In addition to that, Citigroup is 1.62 times more volatile than Wasatch E Growth. It trades about 0.07 of its total potential returns per unit of risk. Wasatch E Growth is currently generating about 0.15 per unit of volatility. If you would invest 8,833 in Wasatch E Growth on September 1, 2024 and sell it today you would earn a total of 2,078 from holding Wasatch E Growth or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Wasatch E Growth
Performance |
| Timeline |
| Citigroup |
| Wasatch E Growth |
Citigroup and Wasatch E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wasatch E
The main advantage of trading using opposite Citigroup and Wasatch E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wasatch E 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 Wasatch E will offset losses from the drop in Wasatch E's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wasatch E vs. World Energy Fund | Wasatch E vs. Hennessy Bp Energy | Wasatch E vs. Clearbridge Energy Mlp | Wasatch E vs. Dreyfus Natural Resources |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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