Correlation Between Citigroup and Jpmorgan Intrepid

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

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

Diversification Opportunities for Citigroup and Jpmorgan Intrepid

0.83

Correlation Coefficient

Citigroup  Jpmorgan Intrepid

Very poor diversification

The 3 months correlation between Citigroup and Jpmorgan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jpmorgan Intrepid Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Intrepid Growth 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 Intrepid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Intrepid Growth has no effect on the direction of Citigroup i.e., Citigroup and Jpmorgan Intrepid go up and down completely randomly.

Pair Corralation between Citigroup and Jpmorgan Intrepid

Taking into account the 90-day investment horizon Citigroup is expected to generate 1.57 times more return on investment than Jpmorgan Intrepid. However, Citigroup is 1.57 times more volatile than Jpmorgan Intrepid Growth. It trades about 0.09 of its potential returns per unit of risk. Jpmorgan Intrepid Growth is currently generating about 0.0 per unit of risk. If you would invest  6,203  in Citigroup on September 21, 2024 and sell it today you would earn a total of  639.00  from holding Citigroup or generate 10.3% return on investment over 90 days.

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

Citigroup  vs.  Jpmorgan Intrepid Growth

Citigroup

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) 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.

Jpmorgan Intrepid Growth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jpmorgan Intrepid Growth has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Jpmorgan Intrepid 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 Jpmorgan Intrepid

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

The idea behind Citigroup and Jpmorgan Intrepid Growth 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.