Correlation Between Citigroup and Fideicomiso Irrevocable

Can any of the company-specific risk be diversified away by investing in both Citigroup and Fideicomiso Irrevocable 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 Citigroup and Fideicomiso Irrevocable into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Fideicomiso Irrevocable No, you can compare the effects of market volatilities on Citigroup and Fideicomiso Irrevocable 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 Fideicomiso Irrevocable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Fideicomiso Irrevocable.

Diversification Opportunities for Citigroup and Fideicomiso Irrevocable

-0.03

Correlation Coefficient

Citigroup  Fideicomiso Irrevocable

Good diversification

The 3 months correlation between Citigroup and Fideicomiso is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Fideicomiso Irrevocable No in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fideicomiso Irrevocable 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 Fideicomiso Irrevocable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fideicomiso Irrevocable has no effect on the direction of Citigroup i.e., Citigroup and Fideicomiso Irrevocable go up and down completely randomly.

Pair Corralation between Citigroup and Fideicomiso Irrevocable

Taking into account the 90-day investment horizon Citigroup is expected to generate 14.2 times more return on investment than Fideicomiso Irrevocable. However, Citigroup is 14.2 times more volatile than Fideicomiso Irrevocable No. It trades about 0.01 of its potential returns per unit of risk. Fideicomiso Irrevocable No is currently generating about 0.13 per unit of risk. If you would invest  6,991  in Citigroup on December 29, 2024 and sell it today you would earn a total of  42.00  from holding Citigroup or generate 0.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Citigroup  vs.  Fideicomiso Irrevocable No

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Fideicomiso Irrevocable

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fideicomiso Irrevocable No are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Fideicomiso Irrevocable is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Citigroup and Fideicomiso Irrevocable

The main advantage of trading using opposite Citigroup and Fideicomiso Irrevocable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Fideicomiso Irrevocable 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 Fideicomiso Irrevocable will offset losses from the drop in Fideicomiso Irrevocable's long position.

The idea behind Citigroup and Fideicomiso Irrevocable No 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.