Correlation Between Citigroup and Fator Verit
Can any of the company-specific risk be diversified away by investing in both Citigroup and Fator Verit 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 Fator Verit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Fator Verit Fundo, you can compare the effects of market volatilities on Citigroup and Fator Verit 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 Fator Verit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fator Verit.
Diversification Opportunities for Citigroup and Fator Verit
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Fator is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fator Verit Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fator Verit Fundo 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 Fator Verit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fator Verit Fundo has no effect on the direction of Citigroup i.e., Citigroup and Fator Verit go up and down completely randomly.
Pair Corralation between Citigroup and Fator Verit
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.49 times more return on investment than Fator Verit. However, Citigroup is 2.49 times more volatile than Fator Verit Fundo. It trades about 0.06 of its potential returns per unit of risk. Fator Verit Fundo is currently generating about 0.0 per unit of risk. If you would invest 4,651 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,436 from holding Citigroup or generate 52.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.56% |
| Values | Daily Returns |
Citigroup vs. Fator Verit Fundo
Performance |
| Timeline |
| Citigroup |
| Fator Verit Fundo |
Citigroup and Fator Verit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Fator Verit
The main advantage of trading using opposite Citigroup and Fator Verit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fator Verit 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 Fator Verit will offset losses from the drop in Fator Verit's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Fator Verit vs. Energisa SA | Fator Verit vs. BTG Pactual Logstica | Fator Verit vs. Plano Plano Desenvolvimento | Fator Verit vs. Companhia Habitasul de |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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