Correlation Between Citigroup and Strategic Income
Can any of the company-specific risk be diversified away by investing in both Citigroup and Strategic Income 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 Strategic Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Strategic Income Fund, you can compare the effects of market volatilities on Citigroup and Strategic Income 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 Strategic Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Strategic Income.
Diversification Opportunities for Citigroup and Strategic Income
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Strategic is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Strategic Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Income 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 Strategic Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Income has no effect on the direction of Citigroup i.e., Citigroup and Strategic Income go up and down completely randomly.
Pair Corralation between Citigroup and Strategic Income
Taking into account the 90-day investment horizon Citigroup is expected to generate 9.32 times more return on investment than Strategic Income. However, Citigroup is 9.32 times more volatile than Strategic Income Fund. It trades about 0.11 of its potential returns per unit of risk. Strategic Income Fund is currently generating about 0.13 per unit of risk. If you would invest 9,168 in Citigroup on August 6, 2025 and sell it today you would earn a total of 933.00 from holding Citigroup or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Strategic Income Fund
Performance |
| Timeline |
| Citigroup |
| Strategic Income |
Citigroup and Strategic Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Strategic Income
The main advantage of trading using opposite Citigroup and Strategic Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Strategic Income 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 Strategic Income will offset losses from the drop in Strategic Income's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. HSBC Holdings PLC |
| Strategic Income vs. Gabelli Global Utility | Strategic Income vs. Biotechnology Ultrasector Profund | Strategic Income vs. Dimensional 2060 Target | Strategic Income vs. MFS Government Markets |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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