Correlation Between Citigroup and Maxi Renda
Can any of the company-specific risk be diversified away by investing in both Citigroup and Maxi Renda 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 Maxi Renda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Maxi Renda Fundo, you can compare the effects of market volatilities on Citigroup and Maxi Renda 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 Maxi Renda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Maxi Renda.
Diversification Opportunities for Citigroup and Maxi Renda
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Maxi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Maxi Renda Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxi Renda 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 Maxi Renda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxi Renda Fundo has no effect on the direction of Citigroup i.e., Citigroup and Maxi Renda go up and down completely randomly.
Pair Corralation between Citigroup and Maxi Renda
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.58 times more return on investment than Maxi Renda. However, Citigroup is 1.58 times more volatile than Maxi Renda Fundo. It trades about 0.21 of its potential returns per unit of risk. Maxi Renda Fundo is currently generating about -0.05 per unit of risk. If you would invest 6,412 in Citigroup on August 30, 2024 and sell it today you would earn a total of 604.00 from holding Citigroup or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Maxi Renda Fundo
Performance |
| Timeline |
| Citigroup |
| Maxi Renda Fundo |
Citigroup and Maxi Renda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Maxi Renda
The main advantage of trading using opposite Citigroup and Maxi Renda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Maxi Renda 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 Maxi Renda will offset losses from the drop in Maxi Renda's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Maxi Renda vs. Domo Fundo de | Maxi Renda vs. Aesapar Fundo de | Maxi Renda vs. Ourinvest Jpp Fundo | Maxi Renda vs. Loft II Fundo |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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