Correlation Between Citigroup and Delaware Enhanced

Can any of the company-specific risk be diversified away by investing in both Citigroup and Delaware Enhanced 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 Delaware Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Delaware Enhanced Global, you can compare the effects of market volatilities on Citigroup and Delaware Enhanced 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 Delaware Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Delaware Enhanced.

Diversification Opportunities for Citigroup and Delaware Enhanced

-0.06

Correlation Coefficient

Citigroup  Delaware Enhanced

Good diversification

The 3 months correlation between Citigroup and Delaware is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Delaware Enhanced Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Enhanced Global 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 Delaware Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Enhanced Global has no effect on the direction of Citigroup i.e., Citigroup and Delaware Enhanced go up and down completely randomly.

Pair Corralation between Citigroup and Delaware Enhanced

If you would invest  878.00  in Delaware Enhanced Global on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Delaware Enhanced Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Citigroup  vs.  Delaware Enhanced Global

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Delaware Enhanced Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delaware Enhanced Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Delaware Enhanced is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Delaware Enhanced

The main advantage of trading using opposite Citigroup and Delaware Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Delaware Enhanced 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 Delaware Enhanced will offset losses from the drop in Delaware Enhanced's long position.

The idea behind Citigroup and Delaware Enhanced Global 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.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.