Correlation Between Citigroup and Littelfuse
Can any of the company-specific risk be diversified away by investing in both Citigroup and Littelfuse 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 Littelfuse into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Littelfuse, you can compare the effects of market volatilities on Citigroup and Littelfuse 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 Littelfuse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Littelfuse.
Diversification Opportunities for Citigroup and Littelfuse
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Littelfuse is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Littelfuse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Littelfuse 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 Littelfuse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Littelfuse has no effect on the direction of Citigroup i.e., Citigroup and Littelfuse go up and down completely randomly.
Pair Corralation between Citigroup and Littelfuse
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.82 times more return on investment than Littelfuse. However, Citigroup is 1.23 times less risky than Littelfuse. It trades about 0.08 of its potential returns per unit of risk. Littelfuse is currently generating about -0.03 per unit of risk. If you would invest 9,366 in Citigroup on August 17, 2025 and sell it today you would earn a total of 664.00 from holding Citigroup or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Littelfuse
Performance |
| Timeline |
| Citigroup |
| Littelfuse |
Citigroup and Littelfuse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Littelfuse
The main advantage of trading using opposite Citigroup and Littelfuse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Littelfuse 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 Littelfuse will offset losses from the drop in Littelfuse's long position.| Citigroup vs. Thrivent High Yield | Citigroup vs. Morningstar Unconstrained Allocation | Citigroup vs. Via Renewables | Citigroup vs. Sitka Gold Corp |
| Littelfuse vs. ESCO Technologies | Littelfuse vs. Cognex | Littelfuse vs. Badger Meter | Littelfuse vs. TTM Technologies |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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