Correlation Between Invesco DB and CitiGroup
Can any of the company-specific risk be diversified away by investing in both Invesco DB 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 Invesco DB and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Invesco DB Oil and CitiGroup, you can compare the effects of market volatilities on Invesco DB 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 Invesco DB with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invesco DB and CitiGroup.
Diversification Opportunities for Invesco DB and CitiGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Invesco and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Invesco DB Oil and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and Invesco DB 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 Invesco DB Oil 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 Invesco DB i.e., Invesco DB and CitiGroup go up and down completely randomly.
Pair Corralation between Invesco DB and CitiGroup
If you would invest 1,439 in Invesco DB Oil on January 20, 2024 and sell it today you would earn a total of 122.00 from holding Invesco DB Oil or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Invesco DB Oil vs. CitiGroup
Performance |
| Timeline |
| Invesco DB Oil |
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Invesco DB and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invesco DB and CitiGroup
The main advantage of trading using opposite Invesco DB and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invesco DB 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.| Invesco DB vs. Invesco DB Energy | Invesco DB vs. United States 12 | Invesco DB vs. Invesco DB Base | Invesco DB vs. Invesco DB Precious |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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