Correlation Between Citigroup and STAG Industrial
Can any of the company-specific risk be diversified away by investing in both Citigroup and STAG Industrial 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 STAG Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and STAG Industrial, you can compare the effects of market volatilities on Citigroup and STAG Industrial 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 STAG Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and STAG Industrial.
Diversification Opportunities for Citigroup and STAG Industrial
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and STAG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and STAG Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial 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 STAG Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial has no effect on the direction of Citigroup i.e., Citigroup and STAG Industrial go up and down completely randomly.
Pair Corralation between Citigroup and STAG Industrial
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.97 times more return on investment than STAG Industrial. However, Citigroup is 1.03 times less risky than STAG Industrial. It trades about 0.06 of its potential returns per unit of risk. STAG Industrial is currently generating about 0.0 per unit of risk. If you would invest 6,152 in Citigroup on March 4, 2024 and sell it today you would earn a total of 79.00 from holding Citigroup or generate 1.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. STAG Industrial
Performance |
Timeline |
Citigroup |
STAG Industrial |
Citigroup and STAG Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and STAG Industrial
The main advantage of trading using opposite Citigroup and STAG Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, STAG Industrial 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 STAG Industrial will offset losses from the drop in STAG Industrial's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
STAG Industrial vs. Public Storage | STAG Industrial vs. Extra Space Storage | STAG Industrial vs. Rexford Industrial Realty | STAG Industrial vs. Innovative Industrial Properties |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |