Correlation Between Citigroup and Wilmington Large
Can any of the company-specific risk be diversified away by investing in both Citigroup and Wilmington Large 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 Wilmington Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Wilmington Large Cap Strategy, you can compare the effects of market volatilities on Citigroup and Wilmington Large 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 Wilmington Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wilmington Large.
Diversification Opportunities for Citigroup and Wilmington Large
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Wilmington is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wilmington Large Cap Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington Large Cap 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 Wilmington Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington Large Cap has no effect on the direction of Citigroup i.e., Citigroup and Wilmington Large go up and down completely randomly.
Pair Corralation between Citigroup and Wilmington Large
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.06 times more return on investment than Wilmington Large. However, Citigroup is 2.06 times more volatile than Wilmington Large Cap Strategy. It trades about 0.41 of its potential returns per unit of risk. Wilmington Large Cap Strategy is currently generating about 0.11 per unit of risk. If you would invest 6,977 in Citigroup on October 24, 2024 and sell it today you would earn a total of 1,022 from holding Citigroup or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Wilmington Large Cap Strategy
Performance |
| Timeline |
| Citigroup |
| Wilmington Large Cap |
Citigroup and Wilmington Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wilmington Large
The main advantage of trading using opposite Citigroup and Wilmington Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wilmington Large 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 Wilmington Large will offset losses from the drop in Wilmington Large's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wilmington Large vs. Wilmington Multi Manager Real | Wilmington Large vs. Ab Centrated Growth | Wilmington Large vs. T Rowe Price | Wilmington Large vs. T Rowe Price |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |