Correlation Between Citigroup and Guangzhou Jinyi
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By analyzing existing cross correlation between Citigroup and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Citigroup and Guangzhou Jinyi 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 Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Jinyi.
Diversification Opportunities for Citigroup and Guangzhou Jinyi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Jinyi
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.49 times more return on investment than Guangzhou Jinyi. However, Citigroup is 2.03 times less risky than Guangzhou Jinyi. It trades about 0.07 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of risk. If you would invest 4,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,715 from holding Citigroup or generate 62.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.8% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Citigroup |
| Guangzhou Jinyi Media |
Citigroup and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Jinyi
The main advantage of trading using opposite Citigroup and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.The idea behind Citigroup and Guangzhou Jinyi Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Guangzhou Jinyi vs. Agricultural Bank of | Guangzhou Jinyi vs. Industrial and Commercial | Guangzhou Jinyi vs. Bank of China | Guangzhou Jinyi vs. PetroChina Co Ltd |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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