Correlation Between Citigroup and Allspring Ultra
Can any of the company-specific risk be diversified away by investing in both Citigroup and Allspring Ultra 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 Allspring Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Allspring Ultra Short Term, you can compare the effects of market volatilities on Citigroup and Allspring Ultra 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 Allspring Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Allspring Ultra.
Diversification Opportunities for Citigroup and Allspring Ultra
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Allspring is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allspring Ultra Short Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allspring Ultra 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 Allspring Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allspring Ultra Short has no effect on the direction of Citigroup i.e., Citigroup and Allspring Ultra go up and down completely randomly.
Pair Corralation between Citigroup and Allspring Ultra
Taking into account the 90-day investment horizon Citigroup is expected to generate 25.13 times more return on investment than Allspring Ultra. However, Citigroup is 25.13 times more volatile than Allspring Ultra Short Term. It trades about 0.13 of its potential returns per unit of risk. Allspring Ultra Short Term is currently generating about 0.14 per unit of risk. If you would invest 6,543 in Citigroup on September 12, 2024 and sell it today you would earn a total of 707.00 from holding Citigroup or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Allspring Ultra Short Term
Performance |
| Timeline |
| Citigroup |
| Allspring Ultra Short |
Citigroup and Allspring Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Allspring Ultra
The main advantage of trading using opposite Citigroup and Allspring Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Allspring Ultra 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 Allspring Ultra will offset losses from the drop in Allspring Ultra's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Allspring Ultra vs. Franklin Mutual Global | Allspring Ultra vs. Investec Global Franchise | Allspring Ultra vs. Ab Global Risk | Allspring Ultra vs. Legg Mason Global |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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