Correlation Between Citigroup and Core Plus
Can any of the company-specific risk be diversified away by investing in both Citigroup and Core Plus 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 Core Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Core Plus Fund, you can compare the effects of market volatilities on Citigroup and Core Plus 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 Core Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Core Plus.
Diversification Opportunities for Citigroup and Core Plus
Excellent diversification
The 3 months correlation between Citigroup and Core is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Core Plus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Plus Fund 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 Core Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Plus Fund has no effect on the direction of Citigroup i.e., Citigroup and Core Plus go up and down completely randomly.
Pair Corralation between Citigroup and Core Plus
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.55 times more return on investment than Core Plus. However, Citigroup is 5.55 times more volatile than Core Plus Fund. It trades about 0.14 of its potential returns per unit of risk. Core Plus Fund is currently generating about -0.07 per unit of risk. If you would invest 6,255 in Citigroup on September 23, 2024 and sell it today you would earn a total of 664.00 from holding Citigroup or generate 10.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Core Plus Fund
Performance |
Timeline |
Citigroup |
Core Plus Fund |
Citigroup and Core Plus Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Core Plus
The main advantage of trading using opposite Citigroup and Core Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Core Plus 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 Core Plus will offset losses from the drop in Core Plus' long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
Core Plus vs. Diversified Bond Fund | Core Plus vs. High Yield Fund Investor | Core Plus vs. Government Bond Fund | Core Plus vs. Short Duration Inflation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |