Correlation Between Citigroup and The Hartford
Can any of the company-specific risk be diversified away by investing in both Citigroup and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and The Hartford Growth, you can compare the effects of market volatilities on Citigroup and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and The Hartford.
Diversification Opportunities for Citigroup and The Hartford
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and The is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Citigroup i.e., Citigroup and The Hartford go up and down completely randomly.
Pair Corralation between Citigroup and The Hartford
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.42 times more return on investment than The Hartford. However, Citigroup is 1.42 times more volatile than The Hartford Growth. It trades about 0.06 of its potential returns per unit of risk. The Hartford Growth is currently generating about 0.08 per unit of risk. If you would invest 9,204 in Citigroup on July 20, 2025 and sell it today you would earn a total of 503.00 from holding Citigroup or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. The Hartford Growth
Performance |
| Timeline |
| Citigroup |
| Hartford Growth |
Citigroup and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and The Hartford
The main advantage of trading using opposite Citigroup and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo |
| The Hartford vs. Edward Jones Money | The Hartford vs. John Hancock Money | The Hartford vs. Aig Government Money | The Hartford vs. Elfun Government Money |
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 CEOs Directory module to screen CEOs from public companies around the world.
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