Correlation Between Citigroup and Sanichi Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sanichi Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Sanichi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sanichi Technology Bhd, you can compare the effects of market volatilities on Citigroup and Sanichi Technology 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 Sanichi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sanichi Technology.
Diversification Opportunities for Citigroup and Sanichi Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Sanichi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sanichi Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanichi Technology Bhd 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 Sanichi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanichi Technology Bhd has no effect on the direction of Citigroup i.e., Citigroup and Sanichi Technology go up and down completely randomly.
Pair Corralation between Citigroup and Sanichi Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 292.1 times less return on investment than Sanichi Technology. But when comparing it to its historical volatility, Citigroup is 128.18 times less risky than Sanichi Technology. It trades about 0.09 of its potential returns per unit of risk. Sanichi Technology Bhd is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 20.00 in Sanichi Technology Bhd on October 16, 2024 and sell it today you would lose (7.00) from holding Sanichi Technology Bhd or give up 35.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Citigroup vs. Sanichi Technology Bhd
Performance |
| Timeline |
| Citigroup |
| Sanichi Technology Bhd |
Citigroup and Sanichi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sanichi Technology
The main advantage of trading using opposite Citigroup and Sanichi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sanichi Technology 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 Sanichi Technology will offset losses from the drop in Sanichi Technology's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Sanichi Technology vs. Malayan Banking Bhd | Sanichi Technology vs. Binasat Communications Bhd | Sanichi Technology vs. Lotte Chemical Titan | Sanichi Technology vs. Hong Leong Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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