Correlation Between Citigroup and SanDi Properties
Can any of the company-specific risk be diversified away by investing in both Citigroup and SanDi Properties 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 SanDi Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and SanDi Properties Co, you can compare the effects of market volatilities on Citigroup and SanDi Properties 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 SanDi Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and SanDi Properties.
Diversification Opportunities for Citigroup and SanDi Properties
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and SanDi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and SanDi Properties Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SanDi Properties 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 SanDi Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SanDi Properties has no effect on the direction of Citigroup i.e., Citigroup and SanDi Properties go up and down completely randomly.
Pair Corralation between Citigroup and SanDi Properties
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.81 times more return on investment than SanDi Properties. However, Citigroup is 1.24 times less risky than SanDi Properties. It trades about 0.24 of its potential returns per unit of risk. SanDi Properties Co is currently generating about -0.18 per unit of risk. If you would invest 6,245 in Citigroup on August 25, 2024 and sell it today you would earn a total of 739.00 from holding Citigroup or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. SanDi Properties Co
Performance |
| Timeline |
| Citigroup |
| SanDi Properties |
Citigroup and SanDi Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and SanDi Properties
The main advantage of trading using opposite Citigroup and SanDi Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, SanDi Properties 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 SanDi Properties will offset losses from the drop in SanDi Properties' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| SanDi Properties vs. Sunny Friend Environmental | SanDi Properties vs. Taiwan Secom Co | SanDi Properties vs. TTET Union Corp | SanDi Properties vs. ECOVE Environment Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |