Correlation Between Virtus and CitiGroup
Can any of the company-specific risk be diversified away by investing in both Virtus and CitiGroup 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 Virtus and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus and CitiGroup, you can compare the effects of market volatilities on Virtus and CitiGroup 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 Virtus with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus and CitiGroup.
Diversification Opportunities for Virtus and CitiGroup
Pay attention - limited upside
The 3 months correlation between Virtus and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virtus and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and Virtus 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 Virtus are associated (or correlated) with CitiGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CitiGroup has no effect on the direction of Virtus i.e., Virtus and CitiGroup go up and down completely randomly.
Pair Corralation between Virtus and CitiGroup
If you would invest 2,061 in Virtus on January 24, 2024 and sell it today you would earn a total of 35.00 from holding Virtus or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Virtus vs. CitiGroup
Performance |
| Timeline |
| Virtus |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virtus and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus and CitiGroup
The main advantage of trading using opposite Virtus and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus position performs unexpectedly, CitiGroup 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 CitiGroup will offset losses from the drop in CitiGroup's long position.| Virtus vs. Virtus Newfleet Multi Sector | Virtus vs. Invesco BulletShares 2024 | Virtus vs. FlexShares Core Select | Virtus vs. Invesco BulletShares 2025 |
| CitiGroup vs. ProShares UltraShort Silver | CitiGroup vs. ProShares UltraShort Gold | CitiGroup vs. VanEck Junior Gold |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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