Correlation Between Citigroup and Hartford Total
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hartford Total 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 Hartford Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hartford Total Return, you can compare the effects of market volatilities on Citigroup and Hartford Total 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 Hartford Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hartford Total.
Diversification Opportunities for Citigroup and Hartford Total
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Hartford is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hartford Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Total Return 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 Hartford Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Total Return has no effect on the direction of Citigroup i.e., Citigroup and Hartford Total go up and down completely randomly.
Pair Corralation between Citigroup and Hartford Total
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.81 times more return on investment than Hartford Total. However, Citigroup is 3.81 times more volatile than Hartford Total Return. It trades about -0.04 of its potential returns per unit of risk. Hartford Total Return is currently generating about -0.32 per unit of risk. If you would invest 6,275 in Citigroup on January 27, 2024 and sell it today you would lose (96.00) from holding Citigroup or give up 1.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Hartford Total Return
Performance |
| Timeline |
| Citigroup |
| Hartford Total Return |
Citigroup and Hartford Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hartford Total
The main advantage of trading using opposite Citigroup and Hartford Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hartford Total 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 Hartford Total will offset losses from the drop in Hartford Total's long position.| Citigroup vs. Aquagold International | Citigroup vs. Thrivent High Yield | Citigroup vs. Morningstar Unconstrained Allocation | Citigroup vs. Via Renewables |
| Hartford Total vs. Fidelity Corporate Bond | Hartford Total vs. Fidelity Limited Term | Hartford Total vs. Fidelity High Yield | Hartford Total vs. Fidelity High Dividend |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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