Correlation Between Citigroup and Xinjiang Beixin
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By analyzing existing cross correlation between Citigroup and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Citigroup and Xinjiang Beixin 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 Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xinjiang Beixin.
Diversification Opportunities for Citigroup and Xinjiang Beixin
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Xinjiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road 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 Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Citigroup i.e., Citigroup and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Citigroup and Xinjiang Beixin
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.59 times more return on investment than Xinjiang Beixin. However, Citigroup is 1.7 times less risky than Xinjiang Beixin. It trades about 0.26 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about 0.14 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 | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Xinjiang Beixin RoadBridge
Performance |
| Timeline |
| Citigroup |
| Xinjiang Beixin Road |
Citigroup and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Xinjiang Beixin
The main advantage of trading using opposite Citigroup and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Xinjiang Beixin vs. Humanwell Healthcare Group | Xinjiang Beixin vs. De Rucci Healthy | Xinjiang Beixin vs. Xinke Material | Xinjiang Beixin vs. Kangxin New Materials |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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