Correlation Between Brpr Corporate and Citigroup
Can any of the company-specific risk be diversified away by investing in both Brpr Corporate and Citigroup 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 Brpr Corporate and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brpr Corporate Offices and Citigroup, you can compare the effects of market volatilities on Brpr Corporate 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 Brpr Corporate with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brpr Corporate and Citigroup.
Diversification Opportunities for Brpr Corporate and Citigroup
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brpr and Citigroup is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Brpr Corporate Offices and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Brpr Corporate 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 Brpr Corporate Offices 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 Brpr Corporate i.e., Brpr Corporate and Citigroup go up and down completely randomly.
Pair Corralation between Brpr Corporate and Citigroup
Assuming the 90 days trading horizon Brpr Corporate Offices is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, Brpr Corporate Offices is 1.19 times less risky than Citigroup. The stock trades about -0.02 of its potential returns per unit of risk. The Citigroup is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,127 in Citigroup on October 13, 2024 and sell it today you would earn a total of 3,173 from holding Citigroup or generate 76.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.11% |
| Values | Daily Returns |
Brpr Corporate Offices vs. Citigroup
Performance |
| Timeline |
| Brpr Corporate Offices |
| Citigroup |
Brpr Corporate and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brpr Corporate and Citigroup
The main advantage of trading using opposite Brpr Corporate and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brpr Corporate 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.| Brpr Corporate vs. DXC Technology | Brpr Corporate vs. Check Point Software | Brpr Corporate vs. Align Technology | Brpr Corporate vs. Fair Isaac |
| Citigroup vs. Tres Tentos Agroindustrial | Citigroup vs. The Home Depot | Citigroup vs. Bemobi Mobile Tech | Citigroup vs. Brpr Corporate Offices |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |