Correlation Between Citigroup and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Citigroup and Samji Electronics 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 Samji Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Samji Electronics Co, you can compare the effects of market volatilities on Citigroup and Samji Electronics 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Samji Electronics.
Diversification Opportunities for Citigroup and Samji Electronics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Samji is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji Electronics 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Citigroup i.e., Citigroup and Samji Electronics go up and down completely randomly.
Pair Corralation between Citigroup and Samji Electronics
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.42 times more return on investment than Samji Electronics. However, Citigroup is 2.42 times more volatile than Samji Electronics Co. It trades about 0.26 of its potential returns per unit of risk. Samji Electronics Co is currently generating about -0.22 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Samji Electronics Co
Performance |
| Timeline |
| Citigroup |
| Samji Electronics |
Citigroup and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Samji Electronics
The main advantage of trading using opposite Citigroup and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Samji Electronics 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 Samji Electronics will offset losses from the drop in Samji Electronics' 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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