Correlation Between InRetail Peru and Citigroup
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By analyzing existing cross correlation between InRetail Peru Corp and Citigroup, you can compare the effects of market volatilities on InRetail Peru 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 InRetail Peru with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of InRetail Peru and Citigroup.
Diversification Opportunities for InRetail Peru and Citigroup
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between InRetail and Citigroup is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding InRetail Peru Corp and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and InRetail Peru 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 InRetail Peru Corp 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 InRetail Peru i.e., InRetail Peru and Citigroup go up and down completely randomly.
Pair Corralation between InRetail Peru and Citigroup
Assuming the 90 days trading horizon InRetail Peru Corp is expected to under-perform the Citigroup. But the stock apears to be less risky and, when comparing its historical volatility, InRetail Peru Corp is 2.31 times less risky than Citigroup. The stock trades about -0.03 of its potential returns per unit of risk. The Citigroup is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,496 in Citigroup on September 14, 2024 and sell it today you would earn a total of 2,636 from holding Citigroup or generate 58.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 56.27% |
| Values | Daily Returns |
InRetail Peru Corp vs. Citigroup
Performance |
| Timeline |
| InRetail Peru Corp |
| Citigroup |
InRetail Peru and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InRetail Peru and Citigroup
The main advantage of trading using opposite InRetail Peru and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InRetail Peru 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.| InRetail Peru vs. Nexa Resources Peru | InRetail Peru vs. Citigroup | InRetail Peru vs. Compania de Minas | InRetail Peru vs. Compania Minera Poderosa |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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