Correlation Between Citigroup and Penghua Shenzhen
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By analyzing existing cross correlation between Citigroup and Penghua Shenzhen Energy, you can compare the effects of market volatilities on Citigroup and Penghua Shenzhen 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 Penghua Shenzhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Penghua Shenzhen.
Diversification Opportunities for Citigroup and Penghua Shenzhen
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Penghua is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Penghua Shenzhen Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penghua Shenzhen Energy 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 Penghua Shenzhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penghua Shenzhen Energy has no effect on the direction of Citigroup i.e., Citigroup and Penghua Shenzhen go up and down completely randomly.
Pair Corralation between Citigroup and Penghua Shenzhen
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.81 times more return on investment than Penghua Shenzhen. However, Citigroup is 3.81 times more volatile than Penghua Shenzhen Energy. It trades about 0.21 of its potential returns per unit of risk. Penghua Shenzhen Energy is currently generating about 0.18 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 615.00 from holding Citigroup or generate 9.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Penghua Shenzhen Energy
Performance |
| Timeline |
| Citigroup |
| Penghua Shenzhen Energy |
Citigroup and Penghua Shenzhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Penghua Shenzhen
The main advantage of trading using opposite Citigroup and Penghua Shenzhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Penghua Shenzhen 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 Penghua Shenzhen will offset losses from the drop in Penghua Shenzhen's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Penghua Shenzhen vs. Zhongtong Guomai Communication | Penghua Shenzhen vs. Bus Online Co | Penghua Shenzhen vs. Guangzhou Dongfang Hotel | Penghua Shenzhen vs. Eastern Communications 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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