Correlation Between Citigroup and Franklin Resources,

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

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

Diversification Opportunities for Citigroup and Franklin Resources,

0.73

Correlation Coefficient

Citigroup  Franklin Resources,

Poor diversification

The 3 months correlation between Citigroup and Franklin is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Franklin Resources, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Resources, 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 Franklin Resources,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Resources, has no effect on the direction of Citigroup i.e., Citigroup and Franklin Resources, go up and down completely randomly.

Pair Corralation between Citigroup and Franklin Resources,

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.68 times more return on investment than Franklin Resources,. However, Citigroup is 1.47 times less risky than Franklin Resources,. It trades about -0.02 of its potential returns per unit of risk. Franklin Resources, is currently generating about -0.26 per unit of risk. If you would invest  7,196  in Citigroup on October 12, 2024 and sell it today you would lose (56.00) from holding Citigroup or give up 0.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Citigroup  vs.  Franklin Resources,

Citigroup

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Franklin Resources,

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin Resources, are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Franklin Resources, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Franklin Resources,

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

The idea behind Citigroup and Franklin Resources, 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.