Correlation Between Citigroup and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both Citigroup and Blackrock Muniholdings 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 Blackrock Muniholdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Blackrock Muniholdings Quality, you can compare the effects of market volatilities on Citigroup and Blackrock Muniholdings 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 Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Blackrock Muniholdings.
Diversification Opportunities for Citigroup and Blackrock Muniholdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Blackrock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Blackrock Muniholdings Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings 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 Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of Citigroup i.e., Citigroup and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between Citigroup and Blackrock Muniholdings
If you would invest 6,203 in Citigroup on September 22, 2024 and sell it today you would earn a total of 716.00 from holding Citigroup or generate 11.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Citigroup vs. Blackrock Muniholdings Quality
Performance |
Timeline |
Citigroup |
Blackrock Muniholdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Blackrock Muniholdings
The main advantage of trading using opposite Citigroup and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Blackrock Muniholdings 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 Blackrock Muniholdings will offset losses from the drop in Blackrock Muniholdings' long position.Citigroup vs. JPMorgan Chase Co | ||
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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