Correlation Between Citigroup and FSPG Hi
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By analyzing existing cross correlation between Citigroup and FSPG Hi Tech Co, you can compare the effects of market volatilities on Citigroup and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and FSPG Hi.
Diversification Opportunities for Citigroup and FSPG Hi
Very poor diversification
The 3 months correlation between Citigroup and FSPG is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Citigroup i.e., Citigroup and FSPG Hi go up and down completely randomly.
Pair Corralation between Citigroup and FSPG Hi
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.3 times less return on investment than FSPG Hi. But when comparing it to its historical volatility, Citigroup is 3.05 times less risky than FSPG Hi. It trades about 0.21 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 524.00 in FSPG Hi Tech Co on August 29, 2024 and sell it today you would earn a total of 295.00 from holding FSPG Hi Tech Co or generate 56.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Citigroup |
| FSPG Hi Tech |
Citigroup and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and FSPG Hi
The main advantage of trading using opposite Citigroup and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| FSPG Hi vs. Iat Automobile Technology | FSPG Hi vs. Wuhan Yangtze Communication | FSPG Hi vs. Shenzhen Kexin Communication | FSPG Hi vs. Haima Automobile Group |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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