Correlation Between Citigroup and Compania Introductora
Can any of the company-specific risk be diversified away by investing in both Citigroup and Compania Introductora 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 Compania Introductora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Compania Introductora de, you can compare the effects of market volatilities on Citigroup and Compania Introductora 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 Compania Introductora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Compania Introductora.
Diversification Opportunities for Citigroup and Compania Introductora
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Compania is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Compania Introductora de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania Introductora 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 Compania Introductora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania Introductora has no effect on the direction of Citigroup i.e., Citigroup and Compania Introductora go up and down completely randomly.
Pair Corralation between Citigroup and Compania Introductora
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Compania Introductora. However, Citigroup is 1.75 times less risky than Compania Introductora. It trades about 0.09 of its potential returns per unit of risk. Compania Introductora de is currently generating about -0.03 per unit of risk. If you would invest 7,101 in Citigroup on December 4, 2024 and sell it today you would earn a total of 616.00 from holding Citigroup or generate 8.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 96.72% |
Values | Daily Returns |
Citigroup vs. Compania Introductora de
Performance |
Timeline |
Citigroup |
Compania Introductora |
Citigroup and Compania Introductora Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Compania Introductora
The main advantage of trading using opposite Citigroup and Compania Introductora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Compania Introductora 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 Compania Introductora will offset losses from the drop in Compania Introductora's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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