Correlation Between Grupo Sports and Citigroup
Can any of the company-specific risk be diversified away by investing in both Grupo Sports and Citigroup at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Grupo Sports and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Sports World and Citigroup, you can compare the effects of market volatilities on Grupo Sports 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 Grupo Sports with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Sports and Citigroup.
Diversification Opportunities for Grupo Sports and Citigroup
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grupo and Citigroup is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Sports World and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Grupo Sports 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 Grupo Sports World 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 Grupo Sports i.e., Grupo Sports and Citigroup go up and down completely randomly.
Pair Corralation between Grupo Sports and Citigroup
Assuming the 90 days trading horizon Grupo Sports World is expected to generate 0.88 times more return on investment than Citigroup. However, Grupo Sports World is 1.14 times less risky than Citigroup. It trades about 0.14 of its potential returns per unit of risk. Citigroup is currently generating about 0.12 per unit of risk. If you would invest 480.00 in Grupo Sports World on September 13, 2024 and sell it today you would earn a total of 160.00 from holding Grupo Sports World or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Sports World vs. Citigroup
Performance |
| Timeline |
| Grupo Sports World |
| Citigroup |
Grupo Sports and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Sports and Citigroup
The main advantage of trading using opposite Grupo Sports and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Sports 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.| Grupo Sports vs. Applied Materials | Grupo Sports vs. Verizon Communications | Grupo Sports vs. First Republic Bank | Grupo Sports vs. Lloyds Banking Group |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Bank of America | Citigroup vs. The Select Sector | Citigroup vs. Promotora y Operadora |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |