Correlation Between Citigroup and Brandes Global
Can any of the company-specific risk be diversified away by investing in both Citigroup and Brandes Global 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 Brandes Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Brandes Global Equity, you can compare the effects of market volatilities on Citigroup and Brandes Global 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 Brandes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Brandes Global.
Diversification Opportunities for Citigroup and Brandes Global
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Brandes is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Brandes Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes Global Equity 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 Brandes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes Global Equity has no effect on the direction of Citigroup i.e., Citigroup and Brandes Global go up and down completely randomly.
Pair Corralation between Citigroup and Brandes Global
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Brandes Global. In addition to that, Citigroup is 2.47 times more volatile than Brandes Global Equity. It trades about -0.08 of its total potential returns per unit of risk. Brandes Global Equity is currently generating about 0.17 per unit of volatility. If you would invest 2,977 in Brandes Global Equity on November 28, 2024 and sell it today you would earn a total of 72.00 from holding Brandes Global Equity or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Brandes Global Equity
Performance |
| Timeline |
| Citigroup |
| Brandes Global Equity |
Citigroup and Brandes Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Brandes Global
The main advantage of trading using opposite Citigroup and Brandes Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Brandes Global 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 Brandes Global will offset losses from the drop in Brandes Global's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Brandes Global vs. Forum Real Estate | Brandes Global vs. Prudential Real Estate | Brandes Global vs. Rreef Property Trust | Brandes Global vs. Fidelity Real Estate |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |