Correlation Between United States and CitiGroup
Can any of the company-specific risk be diversified away by investing in both United States 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 United States and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Natural and CitiGroup, you can compare the effects of market volatilities on United States 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 United States with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and CitiGroup.
Diversification Opportunities for United States and CitiGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United States Natural and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and United States 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 United States Natural 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 United States i.e., United States and CitiGroup go up and down completely randomly.
Pair Corralation between United States and CitiGroup
If you would invest (100.00) in CitiGroup on January 19, 2024 and sell it today you would earn a total of 100.00 from holding CitiGroup or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United States Natural vs. CitiGroup
Performance |
| Timeline |
| United States Natural |
| CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United States and CitiGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and CitiGroup
The main advantage of trading using opposite United States and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States 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.| United States vs. VanEck Merk Gold | United States vs. Goldman Sachs Physical | United States vs. GraniteShares Gold Trust | United States vs. iShares Gold Trust |
| CitiGroup vs. ProShares UltraShort Bloomberg | CitiGroup vs. ProShares UltraShort Silver | CitiGroup vs. ProShares UltraShort Gold | CitiGroup vs. MicroSectors Gold Miners |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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