Correlation Between Citigroup and Grupo Concesionario
Can any of the company-specific risk be diversified away by investing in both Citigroup and Grupo Concesionario 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 Concesionario into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Grupo Concesionario del, you can compare the effects of market volatilities on Citigroup and Grupo Concesionario 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 Concesionario. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Grupo Concesionario.
Diversification Opportunities for Citigroup and Grupo Concesionario
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Grupo is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Grupo Concesionario del in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Concesionario del 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 Concesionario. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Concesionario del has no effect on the direction of Citigroup i.e., Citigroup and Grupo Concesionario go up and down completely randomly.
Pair Corralation between Citigroup and Grupo Concesionario
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.9 times more return on investment than Grupo Concesionario. However, Citigroup is 1.11 times less risky than Grupo Concesionario. It trades about 0.45 of its potential returns per unit of risk. Grupo Concesionario del is currently generating about -0.14 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Citigroup vs. Grupo Concesionario del
Performance |
| Timeline |
| Citigroup |
| Grupo Concesionario del |
Citigroup and Grupo Concesionario Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Grupo Concesionario
The main advantage of trading using opposite Citigroup and Grupo Concesionario positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Grupo Concesionario 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 Concesionario will offset losses from the drop in Grupo Concesionario's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Grupo Concesionario vs. United States Steel | Grupo Concesionario vs. Compania de Transporte | Grupo Concesionario vs. Telecom Argentina | Grupo Concesionario vs. Agrometal SAI |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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