Correlation Between Citigroup and Grupo Cementos
Can any of the company-specific risk be diversified away by investing in both Citigroup and Grupo Cementos 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 Grupo Cementos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Grupo Cementos de, you can compare the effects of market volatilities on Citigroup and Grupo Cementos 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 Grupo Cementos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Grupo Cementos.
Diversification Opportunities for Citigroup and Grupo Cementos
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Grupo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Grupo Cementos de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Cementos de 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 Grupo Cementos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Cementos de has no effect on the direction of Citigroup i.e., Citigroup and Grupo Cementos go up and down completely randomly.
Pair Corralation between Citigroup and Grupo Cementos
Given the investment horizon of 90 days Citigroup is expected to generate 0.91 times more return on investment than Grupo Cementos. However, Citigroup is 1.1 times less risky than Grupo Cementos. It trades about 0.12 of its potential returns per unit of risk. Grupo Cementos de is currently generating about 0.04 per unit of risk. If you would invest 75,298 in Citigroup on September 12, 2024 and sell it today you would earn a total of 70,865 from holding Citigroup or generate 94.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Grupo Cementos de
Performance |
| Timeline |
| Citigroup |
| Grupo Cementos de |
Citigroup and Grupo Cementos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Grupo Cementos
The main advantage of trading using opposite Citigroup and Grupo Cementos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Grupo Cementos 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 Grupo Cementos will offset losses from the drop in Grupo Cementos' long position.| Citigroup vs. Grupo Sports World | Citigroup vs. First Majestic Silver | Citigroup vs. Grupo Hotelero Santa | Citigroup vs. Cognizant Technology Solutions |
| Grupo Cementos vs. CEMEX SAB de | Grupo Cementos vs. Grupo Financiero Banorte | Grupo Cementos vs. Alfa SAB de | Grupo Cementos vs. Fomento Econmico Mexicano |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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