Correlation Between Citigroup and Gold Circuit
Can any of the company-specific risk be diversified away by investing in both Citigroup and Gold Circuit 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 Gold Circuit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Gold Circuit Electronics, you can compare the effects of market volatilities on Citigroup and Gold Circuit 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 Gold Circuit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Gold Circuit.
Diversification Opportunities for Citigroup and Gold Circuit
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Gold is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Gold Circuit Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Circuit 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 Gold Circuit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Circuit Electronics has no effect on the direction of Citigroup i.e., Citigroup and Gold Circuit go up and down completely randomly.
Pair Corralation between Citigroup and Gold Circuit
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Gold Circuit. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.63 times less risky than Gold Circuit. The stock trades about -0.04 of its potential returns per unit of risk. The Gold Circuit Electronics is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 21,400 in Gold Circuit Electronics on November 28, 2024 and sell it today you would earn a total of 800.00 from holding Gold Circuit Electronics or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Citigroup vs. Gold Circuit Electronics
Performance |
| Timeline |
| Citigroup |
| Gold Circuit Electronics |
Citigroup and Gold Circuit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Gold Circuit
The main advantage of trading using opposite Citigroup and Gold Circuit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Gold Circuit 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 Gold Circuit will offset losses from the drop in Gold Circuit's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Gold Circuit vs. Compeq Manufacturing Co | Gold Circuit vs. Unitech Printed Circuit | Gold Circuit vs. Unimicron Technology Corp | Gold Circuit vs. WUS Printed Circuit |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |