Correlation Between Bio-PAPPEL SAB and Citigroup
Can any of the company-specific risk be diversified away by investing in both Bio-PAPPEL SAB 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 Bio-PAPPEL SAB and Citigroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bio PAPPEL SAB De and Citigroup, you can compare the effects of market volatilities on Bio-PAPPEL SAB 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 Bio-PAPPEL SAB with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bio-PAPPEL SAB and Citigroup.
Diversification Opportunities for Bio-PAPPEL SAB and Citigroup
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bio-PAPPEL and Citigroup is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bio PAPPEL SAB De and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Bio-PAPPEL SAB 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 Bio PAPPEL SAB De 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 Bio-PAPPEL SAB i.e., Bio-PAPPEL SAB and Citigroup go up and down completely randomly.
Pair Corralation between Bio-PAPPEL SAB and Citigroup
If you would invest 4,756 in Citigroup on January 25, 2024 and sell it today you would earn a total of 1,511 from holding Citigroup or generate 31.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bio PAPPEL SAB De vs. Citigroup
Performance |
| Timeline |
| Bio PAPPEL SAB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Citigroup |
Bio-PAPPEL SAB and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bio-PAPPEL SAB and Citigroup
The main advantage of trading using opposite Bio-PAPPEL SAB and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio-PAPPEL SAB 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.| Bio-PAPPEL SAB vs. AKITA Drilling | Bio-PAPPEL SAB vs. Tenaris SA ADR | Bio-PAPPEL SAB vs. Superior Drilling Products | Bio-PAPPEL SAB vs. Awilco Drilling PLC |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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