Correlation Between Citigroup and Haesung Industrial
Can any of the company-specific risk be diversified away by investing in both Citigroup and Haesung Industrial 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 Haesung Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Haesung Industrial Co, you can compare the effects of market volatilities on Citigroup and Haesung Industrial 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 Haesung Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Haesung Industrial.
Diversification Opportunities for Citigroup and Haesung Industrial
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Haesung is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Haesung Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung Industrial 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 Haesung Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung Industrial has no effect on the direction of Citigroup i.e., Citigroup and Haesung Industrial go up and down completely randomly.
Pair Corralation between Citigroup and Haesung Industrial
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.12 times more return on investment than Haesung Industrial. However, Citigroup is 1.12 times more volatile than Haesung Industrial Co. It trades about 0.16 of its potential returns per unit of risk. Haesung Industrial Co is currently generating about -0.1 per unit of risk. If you would invest 6,083 in Citigroup on August 25, 2024 and sell it today you would earn a total of 901.00 from holding Citigroup or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
Citigroup vs. Haesung Industrial Co
Performance |
| Timeline |
| Citigroup |
| Haesung Industrial |
Citigroup and Haesung Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Haesung Industrial
The main advantage of trading using opposite Citigroup and Haesung Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Haesung Industrial 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 Haesung Industrial will offset losses from the drop in Haesung Industrial's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Haesung Industrial vs. Busan Industrial Co | Haesung Industrial vs. Busan Ind | Haesung Industrial vs. Mirae Asset Daewoo | Haesung Industrial vs. UNISEM Co |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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