Correlation Between Citigroup and Repsol SA
Can any of the company-specific risk be diversified away by investing in both Citigroup and Repsol 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 Repsol SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Repsol SA, you can compare the effects of market volatilities on Citigroup and Repsol 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 Repsol SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Repsol SA.
Diversification Opportunities for Citigroup and Repsol SA
Average diversification
The 3 months correlation between Citigroup and Repsol is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Repsol SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repsol 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 Repsol SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repsol SA has no effect on the direction of Citigroup i.e., Citigroup and Repsol SA go up and down completely randomly.
Pair Corralation between Citigroup and Repsol SA
If you would invest 62,900 in Repsol SA on December 30, 2024 and sell it today you would earn a total of 0.00 from holding Repsol SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Citigroup vs. Repsol SA
Performance |
| Timeline |
| Citigroup |
| Repsol SA |
Citigroup and Repsol SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Repsol SA
The main advantage of trading using opposite Citigroup and Repsol SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Repsol 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 Repsol SA will offset losses from the drop in Repsol SA's long position.| Citigroup vs. PJT Partners | ||
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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