Correlation Between Citigroup and Union Andina
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By analyzing existing cross correlation between Citigroup and Union Andina de, you can compare the effects of market volatilities on Citigroup and Union Andina 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 Union Andina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Union Andina.
Diversification Opportunities for Citigroup and Union Andina
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Union is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Union Andina de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Andina 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 Union Andina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Andina de has no effect on the direction of Citigroup i.e., Citigroup and Union Andina go up and down completely randomly.
Pair Corralation between Citigroup and Union Andina
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.45 times more return on investment than Union Andina. However, Citigroup is 2.45 times more volatile than Union Andina de. It trades about 0.21 of its potential returns per unit of risk. Union Andina de is currently generating about 0.04 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Union Andina de
Performance |
| Timeline |
| Citigroup |
| Union Andina de |
Citigroup and Union Andina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Union Andina
The main advantage of trading using opposite Citigroup and Union Andina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Union Andina 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 Union Andina will offset losses from the drop in Union Andina's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Union Andina vs. Southern Copper Corp | Union Andina vs. Banco de Credito | Union Andina vs. InRetail Peru Corp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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