Correlation Between Ambev SA and CITIGROUP
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By analyzing existing cross correlation between Ambev SA ADR and CITIGROUP INC 43, you can compare the effects of market volatilities on Ambev SA 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 Ambev SA with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambev SA and CITIGROUP.
Diversification Opportunities for Ambev SA and CITIGROUP
Very weak diversification
The 3 months correlation between Ambev and CITIGROUP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ambev SA ADR and CITIGROUP INC 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 43 and Ambev SA 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 Ambev SA ADR 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 INC 43 has no effect on the direction of Ambev SA i.e., Ambev SA and CITIGROUP go up and down completely randomly.
Pair Corralation between Ambev SA and CITIGROUP
Given the investment horizon of 90 days Ambev SA ADR is expected to generate 2.54 times more return on investment than CITIGROUP. However, Ambev SA is 2.54 times more volatile than CITIGROUP INC 43. It trades about 0.15 of its potential returns per unit of risk. CITIGROUP INC 43 is currently generating about -0.16 per unit of risk. If you would invest 185.00 in Ambev SA ADR on November 30, 2024 and sell it today you would earn a total of 22.00 from holding Ambev SA ADR or generate 11.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Ambev SA ADR vs. CITIGROUP INC 43
Performance |
| Timeline |
| Ambev SA ADR |
| CITIGROUP INC 43 |
Ambev SA and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambev SA and CITIGROUP
The main advantage of trading using opposite Ambev SA and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambev SA position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Ambev SA vs. Fomento Economico Mexicano | Ambev SA vs. Boston Beer | Ambev SA vs. Carlsberg AS | Ambev SA vs. Compania Cervecerias Unidas |
| CITIGROUP vs. Eddy Smart Home | CITIGROUP vs. Kilroy Realty Corp | CITIGROUP vs. Playstudios | CITIGROUP vs. Boyd Gaming |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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