Correlation Between Citigroup and Jinlong Machinery
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By analyzing existing cross correlation between Citigroup and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Citigroup and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jinlong Machinery.
Diversification Opportunities for Citigroup and Jinlong Machinery
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Jinlong is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Citigroup i.e., Citigroup and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Citigroup and Jinlong Machinery
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.36 times more return on investment than Jinlong Machinery. However, Citigroup is 2.81 times less risky than Jinlong Machinery. It trades about 0.04 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.3 per unit of risk. If you would invest 7,250 in Citigroup on October 11, 2024 and sell it today you would earn a total of 76.00 from holding Citigroup or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Citigroup |
| Jinlong Machinery |
Citigroup and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jinlong Machinery
The main advantage of trading using opposite Citigroup and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery's long position.| Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co | Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank |
| Jinlong Machinery vs. Financial Street Holdings | Jinlong Machinery vs. Ping An Insurance | Jinlong Machinery vs. Panda Financial Holding | Jinlong Machinery vs. GRG Banking Equipment |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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