Correlation Between Citigroup and Baird Quality
Can any of the company-specific risk be diversified away by investing in both Citigroup and Baird Quality 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 Baird Quality into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Baird Quality Intermediate, you can compare the effects of market volatilities on Citigroup and Baird Quality 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 Baird Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Baird Quality.
Diversification Opportunities for Citigroup and Baird Quality
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Baird is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Baird Quality Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Quality Interm 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 Baird Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Quality Interm has no effect on the direction of Citigroup i.e., Citigroup and Baird Quality go up and down completely randomly.
Pair Corralation between Citigroup and Baird Quality
Taking into account the 90-day investment horizon Citigroup is expected to generate 15.78 times more return on investment than Baird Quality. However, Citigroup is 15.78 times more volatile than Baird Quality Intermediate. It trades about 0.08 of its potential returns per unit of risk. Baird Quality Intermediate is currently generating about 0.38 per unit of risk. If you would invest 9,489 in Citigroup on August 14, 2025 and sell it today you would earn a total of 660.00 from holding Citigroup or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Baird Quality Intermediate
Performance |
| Timeline |
| Citigroup |
| Baird Quality Interm |
Citigroup and Baird Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Baird Quality
The main advantage of trading using opposite Citigroup and Baird Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Baird Quality 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 Baird Quality will offset losses from the drop in Baird Quality's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Wells Fargo | Citigroup vs. Bank of America |
| Baird Quality vs. Blackrock Taxable Municipal | Baird Quality vs. Prudential Unconstrained Bond | Baird Quality vs. Simt High Yield | Baird Quality vs. Amg Gwk Municipal |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |