Correlation Between Citigroup and Shenzhen Silver
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By analyzing existing cross correlation between Citigroup and Shenzhen Silver Basis, you can compare the effects of market volatilities on Citigroup and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shenzhen Silver.
Diversification Opportunities for Citigroup and Shenzhen Silver
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Shenzhen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Citigroup i.e., Citigroup and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Citigroup and Shenzhen Silver
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.05 times less return on investment than Shenzhen Silver. But when comparing it to its historical volatility, Citigroup is 2.55 times less risky than Shenzhen Silver. It trades about 0.2 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 794.00 in Shenzhen Silver Basis on September 12, 2024 and sell it today you would earn a total of 382.00 from holding Shenzhen Silver Basis or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.63% |
| Values | Daily Returns |
Citigroup vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Citigroup |
| Shenzhen Silver Basis |
Citigroup and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shenzhen Silver
The main advantage of trading using opposite Citigroup and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Shenzhen Silver vs. Hunan Mendale Hometextile | Shenzhen Silver vs. Oppein Home Group | Shenzhen Silver vs. Chengdu Spaceon Electronics | Shenzhen Silver vs. Sanbo Hospital Management |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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