Correlation Between Citigroup and Great West
Can any of the company-specific risk be diversified away by investing in both Citigroup and Great West 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 Great West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Great West Sp Mid, you can compare the effects of market volatilities on Citigroup and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Great West.
Diversification Opportunities for Citigroup and Great West
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Great is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Great West Sp Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Sp 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Sp has no effect on the direction of Citigroup i.e., Citigroup and Great West go up and down completely randomly.
Pair Corralation between Citigroup and Great West
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Great West. In addition to that, Citigroup is 2.73 times more volatile than Great West Sp Mid. It trades about -0.2 of its total potential returns per unit of risk. Great West Sp Mid is currently generating about -0.34 per unit of volatility. If you would invest 932.00 in Great West Sp Mid on December 5, 2024 and sell it today you would lose (51.00) from holding Great West Sp Mid or give up 5.47% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Citigroup vs. Great West Sp Mid
Performance |
Timeline |
Citigroup |
Great West Sp |
Citigroup and Great West Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Great West
The main advantage of trading using opposite Citigroup and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Great West vs. Europac Gold Fund | Great West vs. Deutsche Gold Precious | Great West vs. Franklin Gold Precious | Great West vs. Global Gold Fund |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |