Correlation Between Citigroup and Financiera Confianza
Can any of the company-specific risk be diversified away by investing in both Citigroup and Financiera Confianza 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 Financiera Confianza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Financiera Confianza SAA, you can compare the effects of market volatilities on Citigroup and Financiera Confianza 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 Financiera Confianza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Financiera Confianza.
Diversification Opportunities for Citigroup and Financiera Confianza
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Financiera is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Financiera Confianza SAA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financiera Confianza SAA 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 Financiera Confianza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financiera Confianza SAA has no effect on the direction of Citigroup i.e., Citigroup and Financiera Confianza go up and down completely randomly.
Pair Corralation between Citigroup and Financiera Confianza
If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Financiera Confianza SAA
Performance |
| Timeline |
| Citigroup |
| Financiera Confianza SAA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Financiera Confianza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Financiera Confianza
The main advantage of trading using opposite Citigroup and Financiera Confianza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Financiera Confianza 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 Financiera Confianza will offset losses from the drop in Financiera Confianza's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Financiera Confianza vs. Southern Copper Corp | Financiera Confianza vs. Banco de Credito | Financiera Confianza vs. InRetail Peru Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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