Correlation Between Citigroup and Sichuan Jinshi
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By analyzing existing cross correlation between Citigroup and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Citigroup and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sichuan Jinshi.
Diversification Opportunities for Citigroup and Sichuan Jinshi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Sichuan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Citigroup i.e., Citigroup and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Citigroup and Sichuan Jinshi
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.6 times more return on investment than Sichuan Jinshi. However, Citigroup is 1.67 times less risky than Sichuan Jinshi. It trades about 0.08 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.99% |
| Values | Daily Returns |
Citigroup vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Citigroup |
| Sichuan Jinshi Technology |
Citigroup and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sichuan Jinshi
The main advantage of trading using opposite Citigroup and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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