Correlation Between Citigroup and INTERNATIONAL BREWERIES
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By analyzing existing cross correlation between Citigroup and INTERNATIONAL BREWERIES PLC, you can compare the effects of market volatilities on Citigroup and INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and INTERNATIONAL BREWERIES.
Diversification Opportunities for Citigroup and INTERNATIONAL BREWERIES
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and INTERNATIONAL is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and INTERNATIONAL BREWERIES PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL BREWERIES has no effect on the direction of Citigroup i.e., Citigroup and INTERNATIONAL BREWERIES go up and down completely randomly.
Pair Corralation between Citigroup and INTERNATIONAL BREWERIES
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.34 times more return on investment than INTERNATIONAL BREWERIES. However, Citigroup is 2.95 times less risky than INTERNATIONAL BREWERIES. It trades about 0.23 of its potential returns per unit of risk. INTERNATIONAL BREWERIES PLC is currently generating about 0.06 per unit of risk. If you would invest 7,766 in Citigroup on June 9, 2025 and sell it today you would earn a total of 1,774 from holding Citigroup or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Citigroup vs. INTERNATIONAL BREWERIES PLC
Performance |
| Timeline |
| Citigroup |
| INTERNATIONAL BREWERIES |
Citigroup and INTERNATIONAL BREWERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and INTERNATIONAL BREWERIES
The main advantage of trading using opposite Citigroup and INTERNATIONAL BREWERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, INTERNATIONAL BREWERIES 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 INTERNATIONAL BREWERIES will offset losses from the drop in INTERNATIONAL BREWERIES's long position.The idea behind Citigroup and INTERNATIONAL BREWERIES PLC 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.| INTERNATIONAL BREWERIES vs. GUINEA INSURANCE PLC | INTERNATIONAL BREWERIES vs. ALUMINIUM EXTRUSION IND | INTERNATIONAL BREWERIES vs. VITAFOAM NIGERIA PLC | INTERNATIONAL BREWERIES vs. JAPAUL OIL MARITIME |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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