Correlation Between Citigroup and Vanguard Short
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vanguard Short 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 Vanguard Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vanguard Short Term Treasury, you can compare the effects of market volatilities on Citigroup and Vanguard Short 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 Vanguard Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vanguard Short.
Diversification Opportunities for Citigroup and Vanguard Short
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Vanguard is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vanguard Short Term Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Short Term 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 Vanguard Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Short Term has no effect on the direction of Citigroup i.e., Citigroup and Vanguard Short go up and down completely randomly.
Pair Corralation between Citigroup and Vanguard Short
Taking into account the 90-day investment horizon Citigroup is expected to generate 9.69 times more return on investment than Vanguard Short. However, Citigroup is 9.69 times more volatile than Vanguard Short Term Treasury. It trades about 0.05 of its potential returns per unit of risk. Vanguard Short Term Treasury is currently generating about 0.28 per unit of risk. If you would invest 9,518 in Citigroup on May 31, 2025 and sell it today you would earn a total of 139.00 from holding Citigroup or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Vanguard Short Term Treasury
Performance |
| Timeline |
| Citigroup |
| Vanguard Short Term |
Citigroup and Vanguard Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vanguard Short
The main advantage of trading using opposite Citigroup and Vanguard Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vanguard Short 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 Vanguard Short will offset losses from the drop in Vanguard Short's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. Royal Bank of | Citigroup vs. Bank of Montreal |
| Vanguard Short vs. Vanguard Materials Index | Vanguard Short vs. Vanguard Limited Term Tax Exempt | Vanguard Short vs. Vanguard Limited Term Tax Exempt | Vanguard Short vs. Vanguard Global Minimum |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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