Correlation Between Citigroup and JPMorgan ETFs

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

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

Diversification Opportunities for Citigroup and JPMorgan ETFs

0.49

Correlation Coefficient

Citigroup  JPMorgan ETFs

Very weak diversification

The 3 months correlation between Citigroup and JPMorgan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JPMorgan ETFs Ireland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan ETFs Ireland 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 JPMorgan ETFs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan ETFs Ireland has no effect on the direction of Citigroup i.e., Citigroup and JPMorgan ETFs go up and down completely randomly.

Pair Corralation between Citigroup and JPMorgan ETFs

Taking into account the 90-day investment horizon Citigroup is expected to generate 5.6 times more return on investment than JPMorgan ETFs. However, Citigroup is 5.6 times more volatile than JPMorgan ETFs Ireland. It trades about 0.12 of its potential returns per unit of risk. JPMorgan ETFs Ireland is currently generating about -0.03 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 Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Citigroup  vs.  JPMorgan ETFs Ireland

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.

JPMorgan ETFs Ireland

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMorgan ETFs Ireland has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, JPMorgan ETFs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and JPMorgan ETFs

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

The idea behind Citigroup and JPMorgan ETFs Ireland 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.