Correlation Between Citigroup and Guangzhou KDT
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By analyzing existing cross correlation between Citigroup and Guangzhou KDT Machinery, you can compare the effects of market volatilities on Citigroup and Guangzhou KDT 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 KDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou KDT.
Diversification Opportunities for Citigroup and Guangzhou KDT
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Guangzhou is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou KDT Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KDT Machinery 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 KDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KDT Machinery has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou KDT go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou KDT
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.93 times more return on investment than Guangzhou KDT. However, Citigroup is 1.08 times less risky than Guangzhou KDT. It trades about 0.07 of its potential returns per unit of risk. Guangzhou KDT Machinery is currently generating about -0.47 per unit of risk. If you would invest 7,196 in Citigroup on October 12, 2024 and sell it today you would earn a total of 130.00 from holding Citigroup or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Guangzhou KDT Machinery
Performance |
| Timeline |
| Citigroup |
| Guangzhou KDT Machinery |
Citigroup and Guangzhou KDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou KDT
The main advantage of trading using opposite Citigroup and Guangzhou KDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou KDT 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 KDT will offset losses from the drop in Guangzhou KDT's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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