Correlation Between Citigroup and Shenzhen Centralcon
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By analyzing existing cross correlation between Citigroup and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Citigroup and Shenzhen Centralcon 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 Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shenzhen Centralcon.
Diversification Opportunities for Citigroup and Shenzhen Centralcon
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Shenzhen is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon 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 Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Citigroup i.e., Citigroup and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Citigroup and Shenzhen Centralcon
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Shenzhen Centralcon. However, Citigroup is 1.21 times less risky than Shenzhen Centralcon. It trades about 0.21 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.05 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Citigroup |
| Shenzhen Centralcon |
Citigroup and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shenzhen Centralcon
The main advantage of trading using opposite Citigroup and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Shenzhen Centralcon vs. Cambricon Technologies Corp | Shenzhen Centralcon vs. Empyrean Technology Co | Shenzhen Centralcon vs. Kuang Chi Technologies | Shenzhen Centralcon vs. Gansu Jiu Steel |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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