Correlation Between Citigroup and Guggenheim Styleplus

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Can any of the company-specific risk be diversified away by investing in both Citigroup and Guggenheim Styleplus 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 Guggenheim Styleplus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Guggenheim Styleplus -, you can compare the effects of market volatilities on Citigroup and Guggenheim Styleplus 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 Guggenheim Styleplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guggenheim Styleplus.

Diversification Opportunities for Citigroup and Guggenheim Styleplus

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Citigroup and Guggenheim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guggenheim Styleplus - in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Styleplus 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 Guggenheim Styleplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Styleplus has no effect on the direction of Citigroup i.e., Citigroup and Guggenheim Styleplus go up and down completely randomly.

Pair Corralation between Citigroup and Guggenheim Styleplus

If you would invest  0.00  in Guggenheim Styleplus - on February 17, 2022 and sell it today you would earn a total of  0.00  from holding Guggenheim Styleplus - or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy4.55%
ValuesDaily Returns

Citigroup  vs.  Guggenheim Styleplus -

 Performance (%) 
      Timeline 
Citigroup 
Citigroup Performance
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Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in June 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Citigroup Price Channel

Guggenheim Styleplus 
Guggenheim Performance
0 of 100
Over the last 90 days Guggenheim Styleplus - has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Guggenheim Styleplus is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Citigroup and Guggenheim Styleplus Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Citigroup and Guggenheim Styleplus

The main advantage of trading using opposite Citigroup and Guggenheim Styleplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guggenheim Styleplus 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 Guggenheim Styleplus will offset losses from the drop in Guggenheim Styleplus' long position.
The idea behind Citigroup and Guggenheim Styleplus - pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Guggenheim Styleplus -

Pair trading matchups for Guggenheim Styleplus

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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Guggenheim Styleplus as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Guggenheim Styleplus' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Guggenheim Styleplus' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Guggenheim Styleplus -.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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