Correlation Between Citigroup and TRAVELERS
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By analyzing existing cross correlation between Citigroup and TRAVELERS INC 4, you can compare the effects of market volatilities on Citigroup and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TRAVELERS.
Diversification Opportunities for Citigroup and TRAVELERS
Very good diversification
The 3 months correlation between Citigroup and TRAVELERS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TRAVELERS INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 4 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 4 has no effect on the direction of Citigroup i.e., Citigroup and TRAVELERS go up and down completely randomly.
Pair Corralation between Citigroup and TRAVELERS
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.25 times more return on investment than TRAVELERS. However, Citigroup is 3.92 times less risky than TRAVELERS. It trades about 0.2 of its potential returns per unit of risk. TRAVELERS INC 4 is currently generating about 0.03 per unit of risk. If you would invest 6,876 in Citigroup on September 16, 2024 and sell it today you would earn a total of 225.00 from holding Citigroup or generate 3.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 61.9% |
Values | Daily Returns |
Citigroup vs. TRAVELERS INC 4
Performance |
Timeline |
Citigroup |
TRAVELERS INC 4 |
Citigroup and TRAVELERS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and TRAVELERS
The main advantage of trading using opposite Citigroup and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
TRAVELERS vs. JBG SMITH Properties | TRAVELERS vs. Mannatech Incorporated | TRAVELERS vs. Estee Lauder Companies | TRAVELERS vs. Radcom |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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