Correlation Between Citigroup and DHDG
Can any of the company-specific risk be diversified away by investing in both Citigroup and DHDG 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 DHDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and DHDG, you can compare the effects of market volatilities on Citigroup and DHDG 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 DHDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DHDG.
Diversification Opportunities for Citigroup and DHDG
Pay attention - limited upside
The 3 months correlation between Citigroup and DHDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DHDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DHDG 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 DHDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DHDG has no effect on the direction of Citigroup i.e., Citigroup and DHDG go up and down completely randomly.
Pair Corralation between Citigroup and DHDG
If you would invest 4,469 in Citigroup on January 24, 2024 and sell it today you would earn a total of 1,626 from holding Citigroup or generate 36.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. DHDG
Performance |
| Timeline |
| Citigroup |
| DHDG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and DHDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and DHDG
The main advantage of trading using opposite Citigroup and DHDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DHDG 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 DHDG will offset losses from the drop in DHDG's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| DHDG vs. Vanguard Total Stock | DHDG vs. SPDR SP 500 | DHDG vs. iShares Core SP | DHDG vs. Vanguard Total Bond |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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