Correlation Between Fomento Economico and CITIGROUP
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By analyzing existing cross correlation between Fomento Economico Mexicano and CITIGROUP INC 55, you can compare the effects of market volatilities on Fomento Economico 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 Fomento Economico with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Economico and CITIGROUP.
Diversification Opportunities for Fomento Economico and CITIGROUP
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fomento and CITIGROUP is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Economico Mexicano and CITIGROUP INC 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 55 and Fomento Economico 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 Fomento Economico Mexicano 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 55 has no effect on the direction of Fomento Economico i.e., Fomento Economico and CITIGROUP go up and down completely randomly.
Pair Corralation between Fomento Economico and CITIGROUP
Considering the 90-day investment horizon Fomento Economico Mexicano is expected to under-perform the CITIGROUP. In addition to that, Fomento Economico is 4.84 times more volatile than CITIGROUP INC 55. It trades about -0.24 of its total potential returns per unit of risk. CITIGROUP INC 55 is currently generating about -0.06 per unit of volatility. If you would invest 10,050 in CITIGROUP INC 55 on September 1, 2024 and sell it today you would lose (39.00) from holding CITIGROUP INC 55 or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fomento Economico Mexicano vs. CITIGROUP INC 55
Performance |
| Timeline |
| Fomento Economico |
| CITIGROUP INC 55 |
Fomento Economico and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Economico and CITIGROUP
The main advantage of trading using opposite Fomento Economico and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Economico 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.| Fomento Economico vs. Ambev SA ADR | Fomento Economico vs. Boston Beer | Fomento Economico vs. Carlsberg AS | Fomento Economico vs. Molson Coors Brewing |
| CITIGROUP vs. Meiwu Technology Co | CITIGROUP vs. Fomento Economico Mexicano | CITIGROUP vs. Pinterest | CITIGROUP vs. Fernhill Beverage |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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