Correlation Between Citigroup and Vasta Platform
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vasta Platform 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 Vasta Platform into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vasta Platform, you can compare the effects of market volatilities on Citigroup and Vasta Platform 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 Vasta Platform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vasta Platform.
Diversification Opportunities for Citigroup and Vasta Platform
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Vasta is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vasta Platform in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vasta Platform 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 Vasta Platform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vasta Platform has no effect on the direction of Citigroup i.e., Citigroup and Vasta Platform go up and down completely randomly.
Pair Corralation between Citigroup and Vasta Platform
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.95 times more return on investment than Vasta Platform. However, Citigroup is 1.06 times less risky than Vasta Platform. It trades about 0.25 of its potential returns per unit of risk. Vasta Platform is currently generating about -0.07 per unit of risk. If you would invest 6,360 in Citigroup on August 27, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Vasta Platform
Performance |
| Timeline |
| Citigroup |
| Vasta Platform |
Citigroup and Vasta Platform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vasta Platform
The main advantage of trading using opposite Citigroup and Vasta Platform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vasta Platform 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 Vasta Platform will offset losses from the drop in Vasta Platform's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Vasta Platform vs. Wah Fu Education | Vasta Platform vs. Golden Sun Education | Vasta Platform vs. Elite Education Group | Vasta Platform vs. QuantaSing Group Limited |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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