Correlation Between Citigroup and Fator IFIX
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fator IFIX 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 Fator IFIX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fator IFIX Fundo, you can compare the effects of market volatilities on Citigroup and Fator IFIX 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 Fator IFIX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fator IFIX.
Diversification Opportunities for Citigroup and Fator IFIX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Fator is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fator IFIX Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fator IFIX Fundo 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 Fator IFIX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fator IFIX Fundo has no effect on the direction of Citigroup i.e., Citigroup and Fator IFIX go up and down completely randomly.
Pair Corralation between Citigroup and Fator IFIX
If you would invest 4,357 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,627 from holding Citigroup or generate 60.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.1% |
| Values | Daily Returns |
Citigroup vs. Fator IFIX Fundo
Performance |
| Timeline |
| Citigroup |
| Fator IFIX Fundo |
Citigroup and Fator IFIX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fator IFIX
The main advantage of trading using opposite Citigroup and Fator IFIX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fator IFIX 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 Fator IFIX will offset losses from the drop in Fator IFIX's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Fator IFIX vs. Energisa SA | Fator IFIX vs. BTG Pactual Logstica | Fator IFIX vs. Plano Plano Desenvolvimento | Fator IFIX vs. Companhia Habitasul de |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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