Correlation Between Citigroup and Zhejiang Yinlun
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By analyzing existing cross correlation between Citigroup and Zhejiang Yinlun Machinery, you can compare the effects of market volatilities on Citigroup and Zhejiang Yinlun 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 Yinlun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zhejiang Yinlun.
Diversification Opportunities for Citigroup and Zhejiang Yinlun
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Zhejiang is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zhejiang Yinlun Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yinlun Machinery 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 Yinlun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yinlun Machinery has no effect on the direction of Citigroup i.e., Citigroup and Zhejiang Yinlun go up and down completely randomly.
Pair Corralation between Citigroup and Zhejiang Yinlun
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.0 times more return on investment than Zhejiang Yinlun. However, Citigroup is 1.0 times less risky than Zhejiang Yinlun. It trades about 0.26 of its potential returns per unit of risk. Zhejiang Yinlun Machinery is currently generating about -0.12 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Zhejiang Yinlun Machinery
Performance |
| Timeline |
| Citigroup |
| Zhejiang Yinlun Machinery |
Citigroup and Zhejiang Yinlun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zhejiang Yinlun
The main advantage of trading using opposite Citigroup and Zhejiang Yinlun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zhejiang Yinlun 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 Yinlun will offset losses from the drop in Zhejiang Yinlun'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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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