Correlation Between Citigroup and Mfs International
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mfs International 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 Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mfs International Diversification, you can compare the effects of market volatilities on Citigroup and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mfs International.
Diversification Opportunities for Citigroup and Mfs International
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Mfs is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mfs International Diversificat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International has no effect on the direction of Citigroup i.e., Citigroup and Mfs International go up and down completely randomly.
Pair Corralation between Citigroup and Mfs International
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.99 times more return on investment than Mfs International. However, Citigroup is 1.99 times more volatile than Mfs International Diversification. It trades about 0.23 of its potential returns per unit of risk. Mfs International Diversification is currently generating about 0.14 per unit of risk. If you would invest 6,900 in Citigroup on September 18, 2024 and sell it today you would earn a total of 249.00 from holding Citigroup or generate 3.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Mfs International Diversificat
Performance |
Timeline |
Citigroup |
Mfs International |
Citigroup and Mfs International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Mfs International
The main advantage of trading using opposite Citigroup and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Mfs International vs. Classic Value Fund | Mfs International vs. Hotchkis Wiley Large | Mfs International vs. Ab Small Cap | Mfs International vs. Harbor Small Cap |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |