Correlation Between Citigroup and Xp Malls
Can any of the company-specific risk be diversified away by investing in both Citigroup and Xp Malls 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 Xp Malls into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Xp Malls Fundo, you can compare the effects of market volatilities on Citigroup and Xp Malls 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 Xp Malls. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xp Malls.
Diversification Opportunities for Citigroup and Xp Malls
Pay attention - limited upside
The 3 months correlation between Citigroup and XPML11 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xp Malls Fundo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xp Malls 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 Xp Malls. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xp Malls Fundo has no effect on the direction of Citigroup i.e., Citigroup and Xp Malls go up and down completely randomly.
Pair Corralation between Citigroup and Xp Malls
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.09 times more return on investment than Xp Malls. However, Citigroup is 2.09 times more volatile than Xp Malls Fundo. It trades about 0.07 of its potential returns per unit of risk. Xp Malls Fundo is currently generating about 0.03 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Citigroup vs. Xp Malls Fundo
Performance |
| Timeline |
| Citigroup |
| Xp Malls Fundo |
Citigroup and Xp Malls Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Xp Malls
The main advantage of trading using opposite Citigroup and Xp Malls positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xp Malls 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 Xp Malls will offset losses from the drop in Xp Malls' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Xp Malls vs. BTG Pactual Logstica | Xp Malls vs. Plano Plano Desenvolvimento | Xp Malls vs. Companhia Habitasul de | Xp Malls vs. The Procter Gamble |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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