Correlation Between Citigroup and Huizhou Speed
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By analyzing existing cross correlation between Citigroup and Huizhou Speed Wireless, you can compare the effects of market volatilities on Citigroup and Huizhou Speed 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 Huizhou Speed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Huizhou Speed.
Diversification Opportunities for Citigroup and Huizhou Speed
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Huizhou is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Huizhou Speed Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huizhou Speed Wireless 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 Huizhou Speed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huizhou Speed Wireless has no effect on the direction of Citigroup i.e., Citigroup and Huizhou Speed go up and down completely randomly.
Pair Corralation between Citigroup and Huizhou Speed
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.42 times more return on investment than Huizhou Speed. However, Citigroup is 2.36 times less risky than Huizhou Speed. It trades about 0.05 of its potential returns per unit of risk. Huizhou Speed Wireless is currently generating about -0.12 per unit of risk. If you would invest 7,016 in Citigroup on September 28, 2024 and sell it today you would earn a total of 84.00 from holding Citigroup or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Huizhou Speed Wireless
Performance |
| Timeline |
| Citigroup |
| Huizhou Speed Wireless |
Citigroup and Huizhou Speed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Huizhou Speed
The main advantage of trading using opposite Citigroup and Huizhou Speed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Huizhou Speed 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 Huizhou Speed will offset losses from the drop in Huizhou Speed's long position.The idea behind Citigroup and Huizhou Speed Wireless 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.| Huizhou Speed vs. Heren Health Co | Huizhou Speed vs. Andon Health Co | Huizhou Speed vs. Shanghai CEO Environmental | Huizhou Speed vs. AVIC Fund Management |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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