Correlation Between Citigroup and Blckrck Fdsiii

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

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

Diversification Opportunities for Citigroup and Blckrck Fdsiii

0.93

Correlation Coefficient

Citigroup  Blckrck Fdsiii

Almost no diversification

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

Pair Corralation between Citigroup and Blckrck Fdsiii

Taking into account the 90-day investment horizon Citigroup is expected to generate 2.01 times more return on investment than Blckrck Fdsiii. However, Citigroup is 2.01 times more volatile than Blckrck Fdsiii Rssll. It trades about 0.07 of its potential returns per unit of risk. Blckrck Fdsiii Rssll is currently generating about 0.12 per unit of risk. If you would invest  4,162  in Citigroup on September 19, 2024 and sell it today you would earn a total of  2,650  from holding Citigroup or generate 63.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.8%
Values	Daily Returns

Citigroup  vs.  Blckrck Fdsiii Rssll

Citigroup

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Blckrck Fdsiii Rssll

Risk-Adjusted Performance

4 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Blckrck Fdsiii Rssll are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Blckrck Fdsiii is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Blckrck Fdsiii

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

The idea behind Citigroup and Blckrck Fdsiii Rssll 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.