Correlation Between Barclays PLC and Citigroup

By analyzing existing cross correlation between Barclays PLC and Citigroup you can compare the effects of market volatilities on Barclays PLC and Citigroup 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 Barclays PLC with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barclays PLC and Citigroup.

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Can any of the company-specific risk be diversified away by investing in both Barclays PLC and Citigroup at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing Barclays PLC and Citigroup into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for Barclays PLC and Citigroup

0.97
Correlation
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Almost no diversification

The 3 months correlation between Barclays and Citigroup is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Barclays PLC and Citigroup Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Barclays PLC 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 Barclays PLC are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Barclays PLC i.e. Barclays PLC and Citigroup go up and down completely randomly.

Pair Corralation between Barclays PLC and Citigroup

Considering 30-days investment horizon, Barclays PLC is expected to generate 0.9 times more return on investment than Citigroup. However, Barclays PLC is 1.11 times less risky than Citigroup. It trades about -0.04 of its potential returns per unit of risk. Citigroup is currently generating about -0.04 per unit of risk. If you would invest  751.00  in Barclays PLC on April 29, 2020 and sell it today you would lose (181.00)  from holding Barclays PLC or give up 24.1% of portfolio value over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Barclays PLC  vs.  Citigroup Inc

 Performance (%) 
      Timeline 
Barclays PLC 
00

Barclays PLC Risk-Adjusted Performance

Over the last 30 days Barclays PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of weak performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in June 2020. The latest agitation may also be a sign of long-running up-swing for the enterprise management.
Citigroup 
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Citigroup Risk-Adjusted Performance

Over the last 30 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite sluggish performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in June 2020. The current disturbance may also be a sign of long term up-swing for the company investors.

Barclays PLC and Citigroup Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.


 
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