Correlation Between Comerica and Citigroup
Can any of the company-specific risk be diversified away by investing in both Comerica 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 Comerica and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Comerica and Citigroup, you can compare the effects of market volatilities on Comerica 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 Comerica with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Comerica and Citigroup.
Diversification Opportunities for Comerica and Citigroup
Weak diversification
The 3 months correlation between Comerica and Citigroup is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Comerica and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Comerica 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 Comerica 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 Comerica i.e., Comerica and Citigroup go up and down completely randomly.
Pair Corralation between Comerica and Citigroup
Considering the 90-day investment horizon Comerica is expected to under-perform the Citigroup. In addition to that, Comerica is 1.71 times more volatile than Citigroup. It trades about 0.0 of its total potential returns per unit of risk. Citigroup is currently generating about 0.04 per unit of volatility. If you would invest 4,784 in Citigroup on January 26, 2024 and sell it today you would earn a total of 1,463 from holding Citigroup or generate 30.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Comerica vs. Citigroup
Performance |
Timeline |
Comerica |
Citigroup |
Comerica and Citigroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Comerica and Citigroup
The main advantage of trading using opposite Comerica and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Comerica 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.Comerica vs. Western Alliance Bancorporation | Comerica vs. KeyCorp | Comerica vs. Truist Financial Corp | Comerica vs. Zions Bancorporation |
Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
CEOs Directory Screen CEOs from public companies around the world | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Transaction History View history of all your transactions and understand their impact on performance | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |