Correlation Between Citigroup and Nuveen Santa
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nuveen Santa 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 Nuveen Santa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nuveen Santa Barbara, you can compare the effects of market volatilities on Citigroup and Nuveen Santa 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 Nuveen Santa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nuveen Santa.
Diversification Opportunities for Citigroup and Nuveen Santa
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Nuveen is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nuveen Santa Barbara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Santa Barbara 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 Nuveen Santa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Santa Barbara has no effect on the direction of Citigroup i.e., Citigroup and Nuveen Santa go up and down completely randomly.
Pair Corralation between Citigroup and Nuveen Santa
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.26 times more return on investment than Nuveen Santa. However, Citigroup is 2.26 times more volatile than Nuveen Santa Barbara. It trades about 0.05 of its potential returns per unit of risk. Nuveen Santa Barbara is currently generating about -0.15 per unit of risk. If you would invest 6,166 in Citigroup on January 26, 2024 and sell it today you would earn a total of 81.00 from holding Citigroup or generate 1.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Nuveen Santa Barbara
Performance |
Timeline |
Citigroup |
Nuveen Santa Barbara |
Citigroup and Nuveen Santa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Nuveen Santa
The main advantage of trading using opposite Citigroup and Nuveen Santa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nuveen Santa 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 Nuveen Santa will offset losses from the drop in Nuveen Santa's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Nuveen Santa vs. American Funds Capital | Nuveen Santa vs. American Funds Capital | Nuveen Santa vs. Capital World Growth | Nuveen Santa vs. Capital World Growth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges |