Correlation Between Citigroup and Doubleline Opportunistic

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

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

Diversification Opportunities for Citigroup and Doubleline Opportunistic

-0.52

Correlation Coefficient

Citigroup  Doubleline Opportunistic

Excellent diversification

The 3 months correlation between Citigroup and Doubleline is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Doubleline Opportunistic Credi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Opportunistic 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 Doubleline Opportunistic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Opportunistic has no effect on the direction of Citigroup i.e., Citigroup and Doubleline Opportunistic go up and down completely randomly.

Pair Corralation between Citigroup and Doubleline Opportunistic

Taking into account the 90-day investment horizon Citigroup is expected to generate 3.05 times more return on investment than Doubleline Opportunistic. However, Citigroup is 3.05 times more volatile than Doubleline Opportunistic Credit. It trades about 0.11 of its potential returns per unit of risk. Doubleline Opportunistic Credit is currently generating about 0.09 per unit of risk. If you would invest  4,676  in Citigroup on September 2, 2024 and sell it today you would earn a total of  2,411  from holding Citigroup or generate 51.56% return on investment over 90 days.

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

Citigroup  vs.  Doubleline Opportunistic Credi

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.

Doubleline Opportunistic

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubleline Opportunistic Credit has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Doubleline Opportunistic is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Citigroup and Doubleline Opportunistic

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

The idea behind Citigroup and Doubleline Opportunistic Credit 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.