Correlation Between Citigroup and Rec Fundo
Can any of the company-specific risk be diversified away by investing in both Citigroup and Rec Fundo 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 Rec Fundo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Rec Fundo De, you can compare the effects of market volatilities on Citigroup and Rec Fundo 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 Rec Fundo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Rec Fundo.
Diversification Opportunities for Citigroup and Rec Fundo
Average diversification
The 3 months correlation between Citigroup and Rec is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Rec Fundo De in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rec Fundo De 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 Rec Fundo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rec Fundo De has no effect on the direction of Citigroup i.e., Citigroup and Rec Fundo go up and down completely randomly.
Pair Corralation between Citigroup and Rec Fundo
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.78 times more return on investment than Rec Fundo. However, Citigroup is 1.28 times less risky than Rec Fundo. It trades about 0.08 of its potential returns per unit of risk. Rec Fundo De is currently generating about 0.02 per unit of risk. If you would invest 4,746 in Citigroup on November 2, 2024 and sell it today you would earn a total of 3,474 from holding Citigroup or generate 73.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Citigroup vs. Rec Fundo De
Performance |
| Timeline |
| Citigroup |
| Rec Fundo De |
Citigroup and Rec Fundo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Rec Fundo
The main advantage of trading using opposite Citigroup and Rec Fundo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Rec Fundo 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 Rec Fundo will offset losses from the drop in Rec Fundo's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Rec Fundo vs. FDO INV IMOB | Rec Fundo vs. SUPREMO FUNDO DE | Rec Fundo vs. Real Estate Investment | Rec Fundo vs. NAVI CRDITO IMOBILIRIO |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |