Correlation Between Citigroup and Compania Minera
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By analyzing existing cross correlation between Citigroup and Compania Minera Atacocha, you can compare the effects of market volatilities on Citigroup and Compania Minera 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 Compania Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Compania Minera.
Diversification Opportunities for Citigroup and Compania Minera
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Compania is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Compania Minera Atacocha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Minera Atacocha 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 Compania Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Minera Atacocha has no effect on the direction of Citigroup i.e., Citigroup and Compania Minera go up and down completely randomly.
Pair Corralation between Citigroup and Compania Minera
Assuming the 90 days horizon Citigroup is expected to generate 0.58 times more return on investment than Compania Minera. However, Citigroup is 1.72 times less risky than Compania Minera. It trades about 0.14 of its potential returns per unit of risk. Compania Minera Atacocha is currently generating about 0.04 per unit of risk. If you would invest 4,128 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,111 from holding Citigroup or generate 75.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 80.19% |
| Values | Daily Returns |
Citigroup vs. Compania Minera Atacocha
Performance |
| Timeline |
| Citigroup |
| Compania Minera Atacocha |
Citigroup and Compania Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Compania Minera
The main advantage of trading using opposite Citigroup and Compania Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Compania Minera 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 Compania Minera will offset losses from the drop in Compania Minera's long position.The idea behind Citigroup and Compania Minera Atacocha pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Compania Minera vs. Nexa Resources Peru | Compania Minera vs. Citigroup | Compania Minera vs. Compania de Minas | Compania Minera vs. Compania Minera Poderosa |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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