Correlation Between Citigroup and Zhejiang Transfar
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Zhejiang Transfar Co, you can compare the effects of market volatilities on Citigroup and Zhejiang Transfar 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 Zhejiang Transfar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zhejiang Transfar.
Diversification Opportunities for Citigroup and Zhejiang Transfar
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zhejiang Transfar Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Transfar 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 Zhejiang Transfar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Transfar has no effect on the direction of Citigroup i.e., Citigroup and Zhejiang Transfar go up and down completely randomly.
Pair Corralation between Citigroup and Zhejiang Transfar
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.83 times more return on investment than Zhejiang Transfar. However, Citigroup is 1.2 times less risky than Zhejiang Transfar. It trades about 0.07 of its potential returns per unit of risk. Zhejiang Transfar Co is currently generating about 0.0 per unit of risk. If you would invest 4,237 in Citigroup on September 4, 2024 and sell it today you would earn a total of 2,902 from holding Citigroup or generate 68.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 96.16% |
Values | Daily Returns |
Citigroup vs. Zhejiang Transfar Co
Performance |
Timeline |
Citigroup |
Zhejiang Transfar |
Citigroup and Zhejiang Transfar Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Zhejiang Transfar
The main advantage of trading using opposite Citigroup and Zhejiang Transfar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zhejiang Transfar 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 Zhejiang Transfar will offset losses from the drop in Zhejiang Transfar's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Zhejiang Transfar vs. Iat Automobile Technology | Zhejiang Transfar vs. Chahua Modern Housewares | Zhejiang Transfar vs. Haima Automobile Group | Zhejiang Transfar vs. Shenzhen Kexin Communication |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Positions Ratings 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 |