Correlation Between Citigroup and BANCO
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By analyzing existing cross correlation between Citigroup and BANCO SANTANDER SA, you can compare the effects of market volatilities on Citigroup and BANCO 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 BANCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BANCO.
Diversification Opportunities for Citigroup and BANCO
Pay attention - limited upside
The 3 months correlation between Citigroup and BANCO is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BANCO SANTANDER SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANCO SANTANDER 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 BANCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANCO SANTANDER SA has no effect on the direction of Citigroup i.e., Citigroup and BANCO go up and down completely randomly.
Pair Corralation between Citigroup and BANCO
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.57 times more return on investment than BANCO. However, Citigroup is 1.57 times more volatile than BANCO SANTANDER SA. It trades about 0.1 of its potential returns per unit of risk. BANCO SANTANDER SA is currently generating about 0.01 per unit of risk. If you would invest 4,460 in Citigroup on September 12, 2024 and sell it today you would earn a total of 2,790 from holding Citigroup or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 75.57% |
| Values | Daily Returns |
Citigroup vs. BANCO SANTANDER SA
Performance |
| Timeline |
| Citigroup |
| BANCO SANTANDER SA |
Citigroup and BANCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BANCO
The main advantage of trading using opposite Citigroup and BANCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BANCO 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 BANCO will offset losses from the drop in BANCO's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BANCO vs. KLA Tencor | BANCO vs. Mid Atlantic Home Health | BANCO vs. Valens | BANCO vs. Bassett Furniture Industries |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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