Correlation Between Vanguard Balanced and CitiGroup
Can any of the company-specific risk be diversified away by investing in both Vanguard Balanced 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 Vanguard Balanced and CitiGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Balanced Index and CitiGroup, you can compare the effects of market volatilities on Vanguard Balanced 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 Vanguard Balanced with a short position of CitiGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Balanced and CitiGroup.
Diversification Opportunities for Vanguard Balanced and CitiGroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vanguard and CitiGroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Balanced Index and CitiGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CitiGroup and Vanguard Balanced 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 Vanguard Balanced Index 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 Vanguard Balanced i.e., Vanguard Balanced and CitiGroup go up and down completely randomly.
Pair Corralation between Vanguard Balanced and CitiGroup
If you would invest 4,077 in Vanguard Balanced Index on January 24, 2024 and sell it today you would earn a total of 413.00 from holding Vanguard Balanced Index or generate 10.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Vanguard Balanced Index vs. CitiGroup
Performance |
Timeline |
Vanguard Balanced Index |
CitiGroup |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Vanguard Balanced and CitiGroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vanguard Balanced and CitiGroup
The main advantage of trading using opposite Vanguard Balanced and CitiGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Balanced 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.Vanguard Balanced vs. Vanguard Wellesley Income | Vanguard Balanced vs. Vanguard Extended Market | Vanguard Balanced vs. Vanguard Value Index | Vanguard Balanced 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Stocks Directory Find actively traded stocks across global markets |