Correlation Between Banco Internacional and Citigroup
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By analyzing existing cross correlation between Banco Internacional del and Citigroup, you can compare the effects of market volatilities on Banco Internacional 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 Banco Internacional with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Internacional and Citigroup.
Diversification Opportunities for Banco Internacional and Citigroup
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Banco and Citigroup is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Banco Internacional del and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Banco Internacional 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 Banco Internacional del 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 Banco Internacional i.e., Banco Internacional and Citigroup go up and down completely randomly.
Pair Corralation between Banco Internacional and Citigroup
If you would invest 6,450 in Citigroup on August 27, 2024 and sell it today you would earn a total of 478.00 from holding Citigroup or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.11% |
| Values | Daily Returns |
Banco Internacional del vs. Citigroup
Performance |
| Timeline |
| Banco Internacional del |
| Citigroup |
Banco Internacional and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Internacional and Citigroup
The main advantage of trading using opposite Banco Internacional and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Internacional 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 Banco Internacional del and Citigroup 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. Corporacion Aceros Arequipa | Citigroup vs. Banco Internacional del | Citigroup vs. Sociedad Minera el |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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