Correlation Between CEMEX SAB and Citigroup
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By analyzing existing cross correlation between CEMEX SAB de and Citigroup, you can compare the effects of market volatilities on CEMEX SAB and Citigroup 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 CEMEX SAB with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEMEX SAB and Citigroup.
Diversification Opportunities for CEMEX SAB and Citigroup
Very weak diversification
The 3 months correlation between CEMEX and Citigroup is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CEMEX SAB de and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and CEMEX SAB 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 CEMEX SAB de are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of CEMEX SAB i.e., CEMEX SAB and Citigroup go up and down completely randomly.
Pair Corralation between CEMEX SAB and Citigroup
Assuming the 90 days trading horizon CEMEX SAB is expected to generate 5.97 times less return on investment than Citigroup. In addition to that, CEMEX SAB is 1.16 times more volatile than Citigroup. It trades about 0.02 of its total potential returns per unit of risk. Citigroup is currently generating about 0.15 per unit of volatility. If you would invest 84,519 in Citigroup on November 9, 2024 and sell it today you would earn a total of 83,947 from holding Citigroup or generate 99.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEMEX SAB de vs. Citigroup
Performance |
| Timeline |
| CEMEX SAB de |
| Citigroup |
CEMEX SAB and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEMEX SAB and Citigroup
The main advantage of trading using opposite CEMEX SAB and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEMEX SAB position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| CEMEX SAB vs. Grupo Mxico SAB | CEMEX SAB vs. Alfa SAB de | CEMEX SAB vs. Grupo Financiero Banorte | CEMEX SAB vs. Fomento Econmico Mexicano |
| Citigroup vs. McEwen Mining | Citigroup vs. Southern Copper | Citigroup vs. Genworth Financial | Citigroup vs. KB Home |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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