Correlation Between Citigroup and Guangzhou Tinci
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By analyzing existing cross correlation between Citigroup and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Citigroup and Guangzhou Tinci 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 Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Tinci.
Diversification Opportunities for Citigroup and Guangzhou Tinci
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Guangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials 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 Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Tinci
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.38 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Citigroup is 2.33 times less risky than Guangzhou Tinci. It trades about 0.21 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,797 in Guangzhou Tinci Materials on August 31, 2024 and sell it today you would earn a total of 638.00 from holding Guangzhou Tinci Materials or generate 35.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Citigroup |
| Guangzhou Tinci Materials |
Citigroup and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Tinci
The main advantage of trading using opposite Citigroup and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Tinci 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 Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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