Correlation Between Citigroup and Invibes Advertising
Can any of the company-specific risk be diversified away by investing in both Citigroup and Invibes Advertising 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 Invibes Advertising into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Invibes Advertising NV, you can compare the effects of market volatilities on Citigroup and Invibes Advertising 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 Invibes Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Invibes Advertising.
Diversification Opportunities for Citigroup and Invibes Advertising
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Invibes is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Invibes Advertising NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invibes Advertising 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 Invibes Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invibes Advertising has no effect on the direction of Citigroup i.e., Citigroup and Invibes Advertising go up and down completely randomly.
Pair Corralation between Citigroup and Invibes Advertising
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.15 times more return on investment than Invibes Advertising. However, Citigroup is 1.15 times more volatile than Invibes Advertising NV. It trades about 0.21 of its potential returns per unit of risk. Invibes Advertising NV is currently generating about -0.37 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Invibes Advertising NV
Performance |
| Timeline |
| Citigroup |
| Invibes Advertising |
Citigroup and Invibes Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Invibes Advertising
The main advantage of trading using opposite Citigroup and Invibes Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Invibes Advertising 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 Invibes Advertising will offset losses from the drop in Invibes Advertising's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Invibes Advertising vs. Grolleau SAS | Invibes Advertising vs. Hydrogene De France | Invibes Advertising vs. Trigano SA | Invibes Advertising vs. Manitou BF SA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |