Correlation Between Citigroup and Xtrackers
Can any of the company-specific risk be diversified away by investing in both Citigroup and Xtrackers 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 Xtrackers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Xtrackers II ESG, you can compare the effects of market volatilities on Citigroup and Xtrackers 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 Xtrackers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xtrackers.
Diversification Opportunities for Citigroup and Xtrackers
Pay attention - limited upside
The 3 months correlation between Citigroup and Xtrackers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xtrackers II ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers II ESG 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 Xtrackers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers II ESG has no effect on the direction of Citigroup i.e., Citigroup and Xtrackers go up and down completely randomly.
Pair Corralation between Citigroup and Xtrackers
If you would invest 5,992 in Citigroup on September 2, 2024 and sell it today you would earn a total of 1,095 from holding Citigroup or generate 18.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Xtrackers II ESG
Performance |
| Timeline |
| Citigroup |
| Xtrackers II ESG |
Citigroup and Xtrackers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Xtrackers
The main advantage of trading using opposite Citigroup and Xtrackers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xtrackers 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 Xtrackers will offset losses from the drop in Xtrackers' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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