Correlation Between Citigroup and Fidelity Emerging
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fidelity Emerging 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 Fidelity Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fidelity Emerging Markets, you can compare the effects of market volatilities on Citigroup and Fidelity Emerging 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 Fidelity Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fidelity Emerging.
Diversification Opportunities for Citigroup and Fidelity Emerging
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Fidelity is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fidelity Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Emerging Markets 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 Fidelity Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Emerging Markets has no effect on the direction of Citigroup i.e., Citigroup and Fidelity Emerging go up and down completely randomly.
Pair Corralation between Citigroup and Fidelity Emerging
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.15 times less return on investment than Fidelity Emerging. In addition to that, Citigroup is 1.43 times more volatile than Fidelity Emerging Markets. It trades about 0.1 of its total potential returns per unit of risk. Fidelity Emerging Markets is currently generating about 0.16 per unit of volatility. If you would invest 4,404 in Fidelity Emerging Markets on August 30, 2025 and sell it today you would earn a total of 469.00 from holding Fidelity Emerging Markets or generate 10.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Fidelity Emerging Markets
Performance |
| Timeline |
| Citigroup |
| Fidelity Emerging Markets |
Citigroup and Fidelity Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fidelity Emerging
The main advantage of trading using opposite Citigroup and Fidelity Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fidelity Emerging 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 Fidelity Emerging will offset losses from the drop in Fidelity Emerging's long position.| Citigroup vs. Ironstone Group | Citigroup vs. Mitsubishi UFJ Lease | Citigroup vs. First Ship Lease | Citigroup vs. China Aircraft Leasing |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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