Correlation Between Citigroup and Allianzgi Global

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

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

Diversification Opportunities for Citigroup and Allianzgi Global

-0.24

Correlation Coefficient

Citigroup  Allianzgi Global

Very good diversification

The 3 months correlation between Citigroup and Allianzgi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Allianzgi Global Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Small 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 Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Small has no effect on the direction of Citigroup i.e., Citigroup and Allianzgi Global go up and down completely randomly.

Pair Corralation between Citigroup and Allianzgi Global

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Allianzgi Global. However, Citigroup is 1.03 times more volatile than Allianzgi Global Small Cap. It trades about 0.12 of its potential returns per unit of risk. Allianzgi Global Small Cap is currently generating about -0.15 per unit of risk. If you would invest  6,205  in Citigroup on September 30, 2024 and sell it today you would earn a total of  895.00  from holding Citigroup or generate 14.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Allianzgi Global Small Cap

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Allianzgi Global Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Global Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Citigroup and Allianzgi Global

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

The idea behind Citigroup and Allianzgi Global Small Cap 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.