Correlation Between Citigroup and HaiXin Foods
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By analyzing existing cross correlation between Citigroup and HaiXin Foods Co, you can compare the effects of market volatilities on Citigroup and HaiXin Foods 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 HaiXin Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HaiXin Foods.
Diversification Opportunities for Citigroup and HaiXin Foods
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and HaiXin is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HaiXin Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HaiXin Foods 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 HaiXin Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HaiXin Foods has no effect on the direction of Citigroup i.e., Citigroup and HaiXin Foods go up and down completely randomly.
Pair Corralation between Citigroup and HaiXin Foods
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.36 times less return on investment than HaiXin Foods. But when comparing it to its historical volatility, Citigroup is 1.54 times less risky than HaiXin Foods. It trades about 0.07 of its potential returns per unit of risk. HaiXin Foods Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 386.00 in HaiXin Foods Co on August 31, 2024 and sell it today you would earn a total of 75.00 from holding HaiXin Foods Co or generate 19.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 96.06% |
| Values | Daily Returns |
Citigroup vs. HaiXin Foods Co
Performance |
| Timeline |
| Citigroup |
| HaiXin Foods |
Citigroup and HaiXin Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HaiXin Foods
The main advantage of trading using opposite Citigroup and HaiXin Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HaiXin Foods 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 HaiXin Foods will offset losses from the drop in HaiXin Foods' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| HaiXin Foods vs. Linewell Software Co | HaiXin Foods vs. Zhongshan Public Utilities | HaiXin Foods vs. Maxvision Technology Corp | HaiXin Foods vs. Tianshui Huatian Technology |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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