Correlation Between Citigroup and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both Citigroup and BANKINTER ADR 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 BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BANKINTER ADR 2007, you can compare the effects of market volatilities on Citigroup and BANKINTER ADR 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 BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BANKINTER ADR.
Diversification Opportunities for Citigroup and BANKINTER ADR
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and BANKINTER is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 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 BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of Citigroup i.e., Citigroup and BANKINTER ADR go up and down completely randomly.
Pair Corralation between Citigroup and BANKINTER ADR
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.1 times more return on investment than BANKINTER ADR. However, Citigroup is 1.1 times more volatile than BANKINTER ADR 2007. It trades about 0.29 of its potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.09 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. BANKINTER ADR 2007
Performance |
| Timeline |
| Citigroup |
| BANKINTER ADR 2007 |
Citigroup and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BANKINTER ADR
The main advantage of trading using opposite Citigroup and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BANKINTER ADR 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 BANKINTER ADR will offset losses from the drop in BANKINTER ADR's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
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.
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