Correlation Between Citigroup and Yuan Longping
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By analyzing existing cross correlation between Citigroup and Yuan Longping High tech, you can compare the effects of market volatilities on Citigroup and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Yuan Longping.
Diversification Opportunities for Citigroup and Yuan Longping
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Yuan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Citigroup i.e., Citigroup and Yuan Longping go up and down completely randomly.
Pair Corralation between Citigroup and Yuan Longping
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.85 times more return on investment than Yuan Longping. However, Citigroup is 1.18 times less risky than Yuan Longping. It trades about 0.07 of its potential returns per unit of risk. Yuan Longping High tech is currently generating about 0.0 per unit of risk. If you would invest 6,117 in Citigroup on August 29, 2024 and sell it today you would earn a total of 899.00 from holding Citigroup or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Citigroup vs. Yuan Longping High tech
Performance |
| Timeline |
| Citigroup |
| Yuan Longping High |
Citigroup and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Yuan Longping
The main advantage of trading using opposite Citigroup and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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