Correlation Between Citigroup and Soyea Technology
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By analyzing existing cross correlation between Citigroup and Soyea Technology Co, you can compare the effects of market volatilities on Citigroup and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Soyea Technology.
Diversification Opportunities for Citigroup and Soyea Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Soyea is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Citigroup i.e., Citigroup and Soyea Technology go up and down completely randomly.
Pair Corralation between Citigroup and Soyea Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.63 times more return on investment than Soyea Technology. However, Citigroup is 1.59 times less risky than Soyea Technology. It trades about 0.06 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. If you would invest 4,651 in Citigroup on September 1, 2024 and sell it today you would earn a total of 2,436 from holding Citigroup or generate 52.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.7% |
| Values | Daily Returns |
Citigroup vs. Soyea Technology Co
Performance |
| Timeline |
| Citigroup |
| Soyea Technology |
Citigroup and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Soyea Technology
The main advantage of trading using opposite Citigroup and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Soyea Technology vs. BeiGene | Soyea Technology vs. Kweichow Moutai Co | Soyea Technology vs. Beijing Roborock Technology | Soyea Technology vs. G bits Network Technology |
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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