Correlation Between Citigroup and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Citigroup and Grupo Televisa 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 Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Grupo Televisa SAB, you can compare the effects of market volatilities on Citigroup and Grupo Televisa 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 Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Grupo Televisa.
Diversification Opportunities for Citigroup and Grupo Televisa
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Grupo is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Citigroup i.e., Citigroup and Grupo Televisa go up and down completely randomly.
Pair Corralation between Citigroup and Grupo Televisa
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.52 times more return on investment than Grupo Televisa. However, Citigroup is 1.91 times less risky than Grupo Televisa. It trades about 0.12 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.02 per unit of risk. If you would invest 4,445 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,539 from holding Citigroup or generate 57.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Grupo Televisa SAB
Performance |
| Timeline |
| Citigroup |
| Grupo Televisa SAB |
Citigroup and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Grupo Televisa
The main advantage of trading using opposite Citigroup and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Grupo Televisa 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 Televisa will offset losses from the drop in Grupo Televisa's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Global PLC | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. Shenandoah Telecommunications Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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