Correlation Between Citigroup and Corporacin Inmobiliaria
Can any of the company-specific risk be diversified away by investing in both Citigroup and Corporacin Inmobiliaria 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 Corporacin Inmobiliaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Corporacin Inmobiliaria Vesta,, you can compare the effects of market volatilities on Citigroup and Corporacin Inmobiliaria 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 Corporacin Inmobiliaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Corporacin Inmobiliaria.
Diversification Opportunities for Citigroup and Corporacin Inmobiliaria
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Corporacin is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Corporacin Inmobiliaria Vesta, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corporacin Inmobiliaria 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 Corporacin Inmobiliaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corporacin Inmobiliaria has no effect on the direction of Citigroup i.e., Citigroup and Corporacin Inmobiliaria go up and down completely randomly.
Pair Corralation between Citigroup and Corporacin Inmobiliaria
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Corporacin Inmobiliaria. However, Citigroup is 1.03 times more volatile than Corporacin Inmobiliaria Vesta,. It trades about 0.23 of its potential returns per unit of risk. Corporacin Inmobiliaria Vesta, is currently generating about -0.08 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 624.00 from holding Citigroup or generate 9.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Corporacin Inmobiliaria Vesta,
Performance |
| Timeline |
| Citigroup |
| Corporacin Inmobiliaria |
Citigroup and Corporacin Inmobiliaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Corporacin Inmobiliaria
The main advantage of trading using opposite Citigroup and Corporacin Inmobiliaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Corporacin Inmobiliaria 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 Corporacin Inmobiliaria will offset losses from the drop in Corporacin Inmobiliaria's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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