Correlation Between Citigroup and Investview

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

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

Diversification Opportunities for Citigroup and Investview

0.77

Correlation Coefficient

Citigroup  Investview

Poor diversification

The 3 months correlation between Citigroup and Investview is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Investview in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investview 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 Investview. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investview has no effect on the direction of Citigroup i.e., Citigroup and Investview go up and down completely randomly.

Pair Corralation between Citigroup and Investview

Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Investview. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 3.32 times less risky than Investview. The stock trades about -0.02 of its potential returns per unit of risk. The Investview is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest  1,400  in Investview on October 1, 2024 and sell it today you would earn a total of  600.00  from holding Investview or generate 42.86% return on investment over 90 days.

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

Citigroup  vs.  Investview

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.

Investview

Risk-Adjusted Performance

27 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Investview are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Investview reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Investview

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

The idea behind Citigroup and Investview 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.