Correlation Between Citigroup and Anhui Fuhuang
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By analyzing existing cross correlation between Citigroup and Anhui Fuhuang Steel, you can compare the effects of market volatilities on Citigroup and Anhui Fuhuang 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 Anhui Fuhuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Anhui Fuhuang.
Diversification Opportunities for Citigroup and Anhui Fuhuang
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Anhui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Anhui Fuhuang Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Fuhuang Steel 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 Anhui Fuhuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Fuhuang Steel has no effect on the direction of Citigroup i.e., Citigroup and Anhui Fuhuang go up and down completely randomly.
Pair Corralation between Citigroup and Anhui Fuhuang
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.04 times less return on investment than Anhui Fuhuang. But when comparing it to its historical volatility, Citigroup is 1.98 times less risky than Anhui Fuhuang. It trades about 0.13 of its potential returns per unit of risk. Anhui Fuhuang Steel is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Anhui Fuhuang Steel on September 2, 2024 and sell it today you would earn a total of 275.00 from holding Anhui Fuhuang Steel or generate 75.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.19% |
| Values | Daily Returns |
Citigroup vs. Anhui Fuhuang Steel
Performance |
| Timeline |
| Citigroup |
| Anhui Fuhuang Steel |
Citigroup and Anhui Fuhuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Anhui Fuhuang
The main advantage of trading using opposite Citigroup and Anhui Fuhuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Anhui Fuhuang 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 Anhui Fuhuang will offset losses from the drop in Anhui Fuhuang's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Anhui Fuhuang vs. Shandong Huifa Foodstuff | Anhui Fuhuang vs. Xiwang Foodstuffs Co | Anhui Fuhuang vs. Oriental Times Media | Anhui Fuhuang vs. Dalian Zeus Entertainment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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