Correlation Between Citigroup and Sociedad Minera
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By analyzing existing cross correlation between Citigroup and Sociedad Minera Corona, you can compare the effects of market volatilities on Citigroup and Sociedad 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 Sociedad Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sociedad Minera.
Diversification Opportunities for Citigroup and Sociedad Minera
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Sociedad is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sociedad Minera Corona in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sociedad Minera Corona 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 Sociedad Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sociedad Minera Corona has no effect on the direction of Citigroup i.e., Citigroup and Sociedad Minera go up and down completely randomly.
Pair Corralation between Citigroup and Sociedad Minera
Assuming the 90 days horizon Citigroup is expected to generate 0.94 times more return on investment than Sociedad Minera. However, Citigroup is 1.06 times less risky than Sociedad Minera. It trades about 0.09 of its potential returns per unit of risk. Sociedad Minera Corona is currently generating about 0.01 per unit of risk. If you would invest 4,440 in Citigroup on September 14, 2024 and sell it today you would earn a total of 2,692 from holding Citigroup or generate 60.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 87.66% |
| Values | Daily Returns |
Citigroup vs. Sociedad Minera Corona
Performance |
| Timeline |
| Citigroup |
| Sociedad Minera Corona |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Citigroup and Sociedad Minera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sociedad Minera
The main advantage of trading using opposite Citigroup and Sociedad Minera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sociedad 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 Sociedad Minera will offset losses from the drop in Sociedad Minera's long position.The idea behind Citigroup and Sociedad Minera Corona 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.| Sociedad Minera vs. Nexa Resources Peru | Sociedad Minera vs. Citigroup | Sociedad Minera vs. Compania de Minas | Sociedad 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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