Correlation Between Citigroup and Banco Del
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By analyzing existing cross correlation between Citigroup and Banco del Bajo, you can compare the effects of market volatilities on Citigroup and Banco Del 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 Citigroup with a short position of Banco Del. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Banco Del.
Diversification Opportunities for Citigroup and Banco Del
Excellent diversification
The 3 months correlation between Citigroup and Banco is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Banco del Bajo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco del Bajo and Citigroup 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 Citigroup are associated (or correlated) with Banco Del. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco del Bajo has no effect on the direction of Citigroup i.e., Citigroup and Banco Del go up and down completely randomly.
Pair Corralation between Citigroup and Banco Del
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.78 times more return on investment than Banco Del. However, Citigroup is 1.28 times less risky than Banco Del. It trades about 0.07 of its potential returns per unit of risk. Banco del Bajo is currently generating about -0.01 per unit of risk. If you would invest 4,328 in Citigroup on September 25, 2024 and sell it today you would earn a total of 2,591 from holding Citigroup or generate 59.87% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Banco del Bajo
Performance |
Timeline |
Citigroup |
Banco del Bajo |
Citigroup and Banco Del Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Banco Del
The main advantage of trading using opposite Citigroup and Banco Del positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Banco Del 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 Banco Del will offset losses from the drop in Banco Del's long position.The idea behind Citigroup and Banco del Bajo 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.Banco Del vs. Samsung Electronics Co | Banco Del vs. Taiwan Semiconductor Manufacturing | Banco Del vs. JPMorgan Chase Co | Banco Del vs. Bank of America |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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