Correlation Between Citigroup and Simt Tax-managed
Can any of the company-specific risk be diversified away by investing in both Citigroup and Simt Tax-managed 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 Simt Tax-managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Simt Tax Managed Large, you can compare the effects of market volatilities on Citigroup and Simt Tax-managed 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 Simt Tax-managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Simt Tax-managed.
Diversification Opportunities for Citigroup and Simt Tax-managed
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Simt is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Simt Tax Managed Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Tax Managed 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 Simt Tax-managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Tax Managed has no effect on the direction of Citigroup i.e., Citigroup and Simt Tax-managed go up and down completely randomly.
Pair Corralation between Citigroup and Simt Tax-managed
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.49 times more return on investment than Simt Tax-managed. However, Citigroup is 2.49 times more volatile than Simt Tax Managed Large. It trades about 0.06 of its potential returns per unit of risk. Simt Tax Managed Large is currently generating about 0.13 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Simt Tax Managed Large
Performance |
| Timeline |
| Citigroup |
| Simt Tax Managed |
Citigroup and Simt Tax-managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Simt Tax-managed
The main advantage of trading using opposite Citigroup and Simt Tax-managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Simt Tax-managed 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 Simt Tax-managed will offset losses from the drop in Simt Tax-managed's long position.| Citigroup vs. Mitsubishi UFJ Financial | Citigroup vs. Royal Bank of | Citigroup vs. Bank of America | Citigroup vs. Wells Fargo |
| Simt Tax-managed vs. Simt Tax Managed Large | Simt Tax-managed vs. Blackrock Advantage Small | Simt Tax-managed vs. Blackrock Total Stock | Simt Tax-managed vs. Blackrock Advantage Small |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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