Correlation Between Citigroup and Tortoise Mlp

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

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

Diversification Opportunities for Citigroup and Tortoise Mlp

0.93

Correlation Coefficient

Citigroup  Tortoise Mlp

Almost no diversification

The 3 months correlation between Citigroup and Tortoise is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tortoise Mlp Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tortoise Mlp Pipeline 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 Tortoise Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tortoise Mlp Pipeline has no effect on the direction of Citigroup i.e., Citigroup and Tortoise Mlp go up and down completely randomly.

Pair Corralation between Citigroup and Tortoise Mlp

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.76 times more return on investment than Tortoise Mlp. However, Citigroup is 1.76 times more volatile than Tortoise Mlp Pipeline. It trades about 0.07 of its potential returns per unit of risk. Tortoise Mlp Pipeline is currently generating about 0.12 per unit of risk. If you would invest  4,293  in Citigroup on September 3, 2024 and sell it today you would earn a total of  2,794  from holding Citigroup or generate 65.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Tortoise Mlp Pipeline

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Tortoise Mlp Pipeline

Risk-Adjusted Performance

25 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tortoise Mlp Pipeline are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Tortoise Mlp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Tortoise Mlp

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

The idea behind Citigroup and Tortoise Mlp Pipeline 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.