Correlation Between Citigroup and Inepar SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Inepar SA 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 Inepar SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Inepar SA Indstria, you can compare the effects of market volatilities on Citigroup and Inepar SA 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 Inepar SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Inepar SA.
Diversification Opportunities for Citigroup and Inepar SA
Pay attention - limited upside
The 3 months correlation between Citigroup and Inepar is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Inepar SA Indstria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inepar SA Indstria 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 Inepar SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inepar SA Indstria has no effect on the direction of Citigroup i.e., Citigroup and Inepar SA go up and down completely randomly.
Pair Corralation between Citigroup and Inepar SA
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.51 times more return on investment than Inepar SA. However, Citigroup is 1.97 times less risky than Inepar SA. It trades about 0.11 of its potential returns per unit of risk. Inepar SA Indstria is currently generating about -0.09 per unit of risk. If you would invest 4,553 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,431 from holding Citigroup or generate 53.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Inepar SA Indstria
Performance |
| Timeline |
| Citigroup |
| Inepar SA Indstria |
Citigroup and Inepar SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Inepar SA
The main advantage of trading using opposite Citigroup and Inepar SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Inepar SA 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 Inepar SA will offset losses from the drop in Inepar SA's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Inepar SA vs. Lupatech SA | Inepar SA vs. Inepar SA Indstria | Inepar SA vs. Eternit SA | Inepar SA vs. Bombril SA |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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