Correlation Between Citigroup and Dimensional 2060
Can any of the company-specific risk be diversified away by investing in both Citigroup and Dimensional 2060 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 Dimensional 2060 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Dimensional 2060 Target, you can compare the effects of market volatilities on Citigroup and Dimensional 2060 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 Dimensional 2060. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dimensional 2060.
Diversification Opportunities for Citigroup and Dimensional 2060
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Dimensional is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dimensional 2060 Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional 2060 Target 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 Dimensional 2060. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional 2060 Target has no effect on the direction of Citigroup i.e., Citigroup and Dimensional 2060 go up and down completely randomly.
Pair Corralation between Citigroup and Dimensional 2060
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.41 times more return on investment than Dimensional 2060. However, Citigroup is 2.41 times more volatile than Dimensional 2060 Target. It trades about 0.39 of its potential returns per unit of risk. Dimensional 2060 Target is currently generating about 0.36 per unit of risk. If you would invest 6,762 in Citigroup on April 24, 2025 and sell it today you would earn a total of 2,837 from holding Citigroup or generate 41.96% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Dimensional 2060 Target
Performance |
Timeline |
Citigroup |
Dimensional 2060 Target |
Citigroup and Dimensional 2060 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Dimensional 2060
The main advantage of trading using opposite Citigroup and Dimensional 2060 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dimensional 2060 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 Dimensional 2060 will offset losses from the drop in Dimensional 2060's long position.Citigroup vs. Bank of America | Citigroup vs. Wells Fargo | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Toronto Dominion Bank |
Dimensional 2060 vs. Dimensional 2045 Target | Dimensional 2060 vs. Dimensional 2020 Target | Dimensional 2060 vs. Dimensional 2055 Target | Dimensional 2060 vs. Dimensional 2040 Target |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |