Correlation Between Citigroup and Virtus Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Virtus Global 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 Virtus Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Virtus Global Dividend, you can compare the effects of market volatilities on Citigroup and Virtus Global 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 Virtus Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Virtus Global.
Diversification Opportunities for Citigroup and Virtus Global
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Virtus is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Virtus Global Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Global Dividend 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 Virtus Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Global Dividend has no effect on the direction of Citigroup i.e., Citigroup and Virtus Global go up and down completely randomly.
Pair Corralation between Citigroup and Virtus Global
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.4 times more return on investment than Virtus Global. However, Citigroup is 2.4 times more volatile than Virtus Global Dividend. It trades about 0.07 of its potential returns per unit of risk. Virtus Global Dividend is currently generating about 0.17 per unit of risk. If you would invest 6,064 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,023 from holding Citigroup or generate 16.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Virtus Global Dividend
Performance |
| Timeline |
| Citigroup |
| Virtus Global Dividend |
Citigroup and Virtus Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Virtus Global
The main advantage of trading using opposite Citigroup and Virtus Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Virtus Global 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 Virtus Global will offset losses from the drop in Virtus Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Virtus Global vs. Blackrock Debt Strategies | Virtus Global vs. Western Asset Global | Virtus Global vs. Pimco Income Strategy | Virtus Global vs. Calamos Convertible And |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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