Correlation Between Citigroup and Guangzhou Zhujiang
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By analyzing existing cross correlation between Citigroup and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Citigroup and Guangzhou Zhujiang 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 Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Zhujiang.
Diversification Opportunities for Citigroup and Guangzhou Zhujiang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Guangzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang 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 Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Zhujiang
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.91 times more return on investment than Guangzhou Zhujiang. However, Citigroup is 1.1 times less risky than Guangzhou Zhujiang. It trades about 0.13 of its potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.03 per unit of risk. If you would invest 4,053 in Citigroup on September 1, 2024 and sell it today you would earn a total of 3,034 from holding Citigroup or generate 74.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.65% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Citigroup |
| Guangzhou Zhujiang |
Citigroup and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Zhujiang
The main advantage of trading using opposite Citigroup and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang'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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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