Correlation Between Citigroup and Grupo BVL
Can any of the company-specific risk be diversified away by investing in both Citigroup and Grupo BVL 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 Grupo BVL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Grupo BVL SA, you can compare the effects of market volatilities on Citigroup and Grupo BVL 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 Grupo BVL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Grupo BVL.
Diversification Opportunities for Citigroup and Grupo BVL
Pay attention - limited upside
The 3 months correlation between Citigroup and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Grupo BVL SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo BVL SA 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 Grupo BVL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo BVL SA has no effect on the direction of Citigroup i.e., Citigroup and Grupo BVL go up and down completely randomly.
Pair Corralation between Citigroup and Grupo BVL
If you would invest 4,237 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,902 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Grupo BVL SA
Performance |
| Timeline |
| Citigroup |
| Grupo BVL SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Grupo BVL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Grupo BVL
The main advantage of trading using opposite Citigroup and Grupo BVL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Grupo BVL 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 Grupo BVL will offset losses from the drop in Grupo BVL's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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