Correlation Between Citigroup and PH Tech
Can any of the company-specific risk be diversified away by investing in both Citigroup and PH Tech 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 PH Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PH Tech Co, you can compare the effects of market volatilities on Citigroup and PH Tech 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 PH Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PH Tech.
Diversification Opportunities for Citigroup and PH Tech
Excellent diversification
The 3 months correlation between Citigroup and 239890 is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PH Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PH Tech 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 PH Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PH Tech has no effect on the direction of Citigroup i.e., Citigroup and PH Tech go up and down completely randomly.
Pair Corralation between Citigroup and PH Tech
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.51 times more return on investment than PH Tech. However, Citigroup is 1.97 times less risky than PH Tech. It trades about 0.07 of its potential returns per unit of risk. PH Tech Co is currently generating about -0.03 per unit of risk. If you would invest 4,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,715 from holding Citigroup or generate 62.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.06% |
| Values | Daily Returns |
Citigroup vs. PH Tech Co
Performance |
| Timeline |
| Citigroup |
| PH Tech |
Citigroup and PH Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PH Tech
The main advantage of trading using opposite Citigroup and PH Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PH Tech 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 PH Tech will offset losses from the drop in PH Tech's long position.The idea behind Citigroup and PH Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PH Tech vs. SBI Investment KOREA | PH Tech vs. Sam Yang Foods | PH Tech vs. Hyundai Green Food | PH Tech vs. E Investment Development |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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