Correlation Between CitiGroup and VictoryShares USAA
Can any of the company-specific risk be diversified away by investing in both CitiGroup and VictoryShares USAA 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 VictoryShares USAA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CitiGroup and VictoryShares USAA Core, you can compare the effects of market volatilities on CitiGroup and VictoryShares USAA 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 VictoryShares USAA. Check out your portfolio center. Please also check ongoing floating volatility patterns of CitiGroup and VictoryShares USAA.
Diversification Opportunities for CitiGroup and VictoryShares USAA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CitiGroup and VictoryShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CitiGroup and VictoryShares USAA Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VictoryShares USAA Core 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 VictoryShares USAA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VictoryShares USAA Core has no effect on the direction of CitiGroup i.e., CitiGroup and VictoryShares USAA go up and down completely randomly.
Pair Corralation between CitiGroup and VictoryShares USAA
If you would invest 4,544 in VictoryShares USAA Core on January 17, 2024 and sell it today you would earn a total of 2.00 from holding VictoryShares USAA Core or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CitiGroup vs. VictoryShares USAA Core
Performance |
| Timeline |
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| VictoryShares USAA Core |
CitiGroup and VictoryShares USAA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CitiGroup and VictoryShares USAA
The main advantage of trading using opposite CitiGroup and VictoryShares USAA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CitiGroup position performs unexpectedly, VictoryShares USAA 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 VictoryShares USAA will offset losses from the drop in VictoryShares USAA's long position.| CitiGroup vs. Vanguard Total Stock | CitiGroup vs. SPDR SP 500 | CitiGroup vs. iShares Core SP | CitiGroup vs. Vanguard Total Bond |
| VictoryShares USAA vs. Schwab International Equity | VictoryShares USAA vs. Schwab Emerging Markets | VictoryShares USAA vs. Schwab Short Term Treasury | VictoryShares USAA vs. Schwab TIPS ETF |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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