Correlation Between Citigroup and Empresas ICA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Empresas ICA 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 Empresas ICA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Empresas ICA SA, you can compare the effects of market volatilities on Citigroup and Empresas ICA 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 Empresas ICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Empresas ICA.
Diversification Opportunities for Citigroup and Empresas ICA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Empresas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Empresas ICA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresas ICA 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 Empresas ICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresas ICA SA has no effect on the direction of Citigroup i.e., Citigroup and Empresas ICA go up and down completely randomly.
Pair Corralation between Citigroup and Empresas ICA
If you would invest 4,788 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,408 from holding Citigroup or generate 50.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Empresas ICA SA
Performance |
| Timeline |
| Citigroup |
| Empresas ICA SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Empresas ICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Empresas ICA
The main advantage of trading using opposite Citigroup and Empresas ICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Empresas ICA 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 Empresas ICA will offset losses from the drop in Empresas ICA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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