Correlation Between Citigroup and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Citigroup and Strategic Asset 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 Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Strategic Asset Management, you can compare the effects of market volatilities on Citigroup and Strategic Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Strategic Asset.
Diversification Opportunities for Citigroup and Strategic Asset
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Strategic is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Citigroup i.e., Citigroup and Strategic Asset go up and down completely randomly.
Pair Corralation between Citigroup and Strategic Asset
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.28 times less return on investment than Strategic Asset. In addition to that, Citigroup is 2.8 times more volatile than Strategic Asset Management. It trades about 0.02 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.11 per unit of volatility. If you would invest 1,847 in Strategic Asset Management on July 25, 2025 and sell it today you would earn a total of 67.00 from holding Strategic Asset Management or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Citigroup vs. Strategic Asset Management
Performance |
| Timeline |
| Citigroup |
| Strategic Asset Mana |
Citigroup and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Strategic Asset
The main advantage of trading using opposite Citigroup and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Strategic Asset 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 Asset will offset losses from the drop in Strategic Asset's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo |
| Strategic Asset vs. Tekla Healthcare Investors | Strategic Asset vs. Eventide Healthcare Life | Strategic Asset vs. The Hartford Healthcare | Strategic Asset vs. Schwab Health Care |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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