Correlation Between Citigroup and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Citigroup and Tiaa Cref 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 Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Tiaa Cref Lifecycle Index, you can compare the effects of market volatilities on Citigroup and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tiaa Cref.
Diversification Opportunities for Citigroup and Tiaa Cref
Almost no diversification
The 3 months correlation between Citigroup and Tiaa is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tiaa Cref Lifecycle Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Lifecycle 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Lifecycle has no effect on the direction of Citigroup i.e., Citigroup and Tiaa Cref go up and down completely randomly.
Pair Corralation between Citigroup and Tiaa Cref
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.11 times more return on investment than Tiaa Cref. However, Citigroup is 5.11 times more volatile than Tiaa Cref Lifecycle Index. It trades about 0.37 of its potential returns per unit of risk. Tiaa Cref Lifecycle Index is currently generating about 0.19 per unit of risk. If you would invest 8,512 in Citigroup on April 30, 2025 and sell it today you would earn a total of 1,043 from holding Citigroup or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Tiaa Cref Lifecycle Index
Performance |
| Timeline |
| Citigroup |
| Tiaa Cref Lifecycle |
Citigroup and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Tiaa Cref
The main advantage of trading using opposite Citigroup and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
| Tiaa Cref vs. Ashmore Emerging Markets | Tiaa Cref vs. Ab Bond Inflation | Tiaa Cref vs. The National Tax Free | Tiaa Cref vs. Old Westbury California |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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