Correlation Between Citigroup and TD Monthly
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By analyzing existing cross correlation between Citigroup and TD Monthly Income, you can compare the effects of market volatilities on Citigroup and TD Monthly 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 TD Monthly. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TD Monthly.
Diversification Opportunities for Citigroup and TD Monthly
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and 0P00016N5D is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TD Monthly Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TD Monthly Income 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 TD Monthly. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TD Monthly Income has no effect on the direction of Citigroup i.e., Citigroup and TD Monthly go up and down completely randomly.
Pair Corralation between Citigroup and TD Monthly
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.23 times more return on investment than TD Monthly. However, Citigroup is 6.23 times more volatile than TD Monthly Income. It trades about 0.18 of its potential returns per unit of risk. TD Monthly Income is currently generating about 0.16 per unit of risk. If you would invest 5,788 in Citigroup on September 15, 2024 and sell it today you would earn a total of 1,313 from holding Citigroup or generate 22.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. TD Monthly Income
Performance |
Timeline |
Citigroup |
TD Monthly Income |
Citigroup and TD Monthly Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and TD Monthly
The main advantage of trading using opposite Citigroup and TD Monthly positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TD Monthly 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 TD Monthly will offset losses from the drop in TD Monthly's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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