Correlation Between Citigroup and Invernova
Can any of the company-specific risk be diversified away by investing in both Citigroup and Invernova 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 Invernova into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Invernova SA, you can compare the effects of market volatilities on Citigroup and Invernova 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 Invernova. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Invernova.
Diversification Opportunities for Citigroup and Invernova
Pay attention - limited upside
The 3 months correlation between Citigroup and Invernova is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Invernova SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invernova 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 Invernova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invernova SA has no effect on the direction of Citigroup i.e., Citigroup and Invernova go up and down completely randomly.
Pair Corralation between Citigroup and Invernova
If you would invest 4,950 in Citigroup on September 20, 2024 and sell it today you would earn a total of 2,162 from holding Citigroup or generate 43.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Invernova SA
Performance |
| Timeline |
| Citigroup |
| Invernova SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Invernova Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Invernova
The main advantage of trading using opposite Citigroup and Invernova positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Invernova 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 Invernova will offset losses from the drop in Invernova's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Invernova vs. Aguas Andinas SA | Invernova vs. Parq Arauco | Invernova vs. Enel Generacin Chile | Invernova vs. Sociedad Matriz SAAM |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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