Correlation Between Citigroup and Sinphar Pharmaceutical
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sinphar Pharmaceutical 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 Sinphar Pharmaceutical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sinphar Pharmaceutical Co, you can compare the effects of market volatilities on Citigroup and Sinphar Pharmaceutical 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 Sinphar Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sinphar Pharmaceutical.
Diversification Opportunities for Citigroup and Sinphar Pharmaceutical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Sinphar is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sinphar Pharmaceutical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinphar Pharmaceutical 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 Sinphar Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinphar Pharmaceutical has no effect on the direction of Citigroup i.e., Citigroup and Sinphar Pharmaceutical go up and down completely randomly.
Pair Corralation between Citigroup and Sinphar Pharmaceutical
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.37 times more return on investment than Sinphar Pharmaceutical. However, Citigroup is 4.37 times more volatile than Sinphar Pharmaceutical Co. It trades about 0.24 of its potential returns per unit of risk. Sinphar Pharmaceutical Co is currently generating about -0.03 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Sinphar Pharmaceutical Co
Performance |
| Timeline |
| Citigroup |
| Sinphar Pharmaceutical |
Citigroup and Sinphar Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sinphar Pharmaceutical
The main advantage of trading using opposite Citigroup and Sinphar Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sinphar Pharmaceutical 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 Sinphar Pharmaceutical will offset losses from the drop in Sinphar Pharmaceutical's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Sinphar Pharmaceutical vs. CHC Healthcare Group | Sinphar Pharmaceutical vs. GenMont Biotech | Sinphar Pharmaceutical vs. Abnova Taiwan Corp | Sinphar Pharmaceutical vs. Wellell |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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