Correlation Between America Movil and Citigroup
Can any of the company-specific risk be diversified away by investing in both America Movil 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 America Movil and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between America Movil SAB and Citigroup, you can compare the effects of market volatilities on America Movil 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 America Movil with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of America Movil and Citigroup.
Diversification Opportunities for America Movil and Citigroup
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between America and Citigroup is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding America Movil SAB and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and America Movil 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 America Movil SAB 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 America Movil i.e., America Movil and Citigroup go up and down completely randomly.
Pair Corralation between America Movil and Citigroup
Considering the 90-day investment horizon America Movil SAB is expected to under-perform the Citigroup. In addition to that, America Movil is 1.08 times more volatile than Citigroup. It trades about -0.22 of its total potential returns per unit of risk. Citigroup is currently generating about -0.1 per unit of volatility. If you would invest 6,013 in Citigroup on January 20, 2024 and sell it today you would lose (181.00) from holding Citigroup or give up 3.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
America Movil SAB vs. Citigroup
Performance |
| Timeline |
| America Movil SAB |
| Citigroup |
America Movil and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with America Movil and Citigroup
The main advantage of trading using opposite America Movil and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if America Movil 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.| America Movil vs. Rxsight | America Movil vs. Axogen Inc | America Movil vs. Treace Medical Concepts | America Movil vs. PulmonxCorp |
| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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