Correlation Between Citigroup and Calvert Long
Can any of the company-specific risk be diversified away by investing in both Citigroup and Calvert Long 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 Calvert Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Calvert Long Term Income, you can compare the effects of market volatilities on Citigroup and Calvert Long 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 Calvert Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Calvert Long.
Diversification Opportunities for Citigroup and Calvert Long
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Calvert is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Calvert Long Term Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Long 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 Calvert Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Long Term has no effect on the direction of Citigroup i.e., Citigroup and Calvert Long go up and down completely randomly.
Pair Corralation between Citigroup and Calvert Long
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.43 times more return on investment than Calvert Long. However, Citigroup is 5.43 times more volatile than Calvert Long Term Income. It trades about 0.37 of its potential returns per unit of risk. Calvert Long Term Income is currently generating about 0.03 per unit of risk. If you would invest 6,760 in Citigroup on May 1, 2025 and sell it today you would earn a total of 2,688 from holding Citigroup or generate 39.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Calvert Long Term Income
Performance |
Timeline |
Citigroup |
Calvert Long Term |
Citigroup and Calvert Long Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Calvert Long
The main advantage of trading using opposite Citigroup and Calvert Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Calvert Long 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 Calvert Long will offset losses from the drop in Calvert Long's long position.Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
Calvert Long vs. Pace Large Growth | Calvert Long vs. Eagle Growth Income | Calvert Long vs. Qs Moderate Growth | Calvert Long vs. Qs Large Cap |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world |