Correlation Between BRP and CITIGROUP
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By analyzing existing cross correlation between BRP Inc and CITIGROUP INC 53, you can compare the effects of market volatilities on BRP 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 BRP with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRP and CITIGROUP.
Diversification Opportunities for BRP and CITIGROUP
Very good diversification
The 3 months correlation between BRP and CITIGROUP is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding BRP Inc and CITIGROUP INC 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 53 and BRP 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 BRP Inc 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 INC 53 has no effect on the direction of BRP i.e., BRP and CITIGROUP go up and down completely randomly.
Pair Corralation between BRP and CITIGROUP
Given the investment horizon of 90 days BRP Inc is expected to under-perform the CITIGROUP. In addition to that, BRP is 2.55 times more volatile than CITIGROUP INC 53. It trades about -0.25 of its total potential returns per unit of risk. CITIGROUP INC 53 is currently generating about 0.09 per unit of volatility. If you would invest 9,267 in CITIGROUP INC 53 on November 9, 2024 and sell it today you would earn a total of 179.00 from holding CITIGROUP INC 53 or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
BRP Inc vs. CITIGROUP INC 53
Performance |
| Timeline |
| BRP Inc |
| CITIGROUP INC 53 |
BRP and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRP and CITIGROUP
The main advantage of trading using opposite BRP and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRP 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.The idea behind BRP Inc and CITIGROUP INC 53 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CITIGROUP vs. Westrock Coffee | CITIGROUP vs. NetEase | CITIGROUP vs. Ambev SA ADR | CITIGROUP vs. Boyd Gaming |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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