Correlation Between Citigroup and Beijing Watertek
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Beijing Watertek Information, you can compare the effects of market volatilities on Citigroup and Beijing Watertek 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 Beijing Watertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Beijing Watertek.
Diversification Opportunities for Citigroup and Beijing Watertek
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Beijing is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Beijing Watertek Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Watertek Inf 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 Beijing Watertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Watertek Inf has no effect on the direction of Citigroup i.e., Citigroup and Beijing Watertek go up and down completely randomly.
Pair Corralation between Citigroup and Beijing Watertek
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.91 times less return on investment than Beijing Watertek. But when comparing it to its historical volatility, Citigroup is 2.97 times less risky than Beijing Watertek. It trades about 0.18 of its potential returns per unit of risk. Beijing Watertek Information is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Beijing Watertek Information on October 18, 2024 and sell it today you would earn a total of 110.00 from holding Beijing Watertek Information or generate 50.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Citigroup vs. Beijing Watertek Information
Performance |
| Timeline |
| Citigroup |
| Beijing Watertek Inf |
Citigroup and Beijing Watertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Beijing Watertek
The main advantage of trading using opposite Citigroup and Beijing Watertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Beijing Watertek 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 Beijing Watertek will offset losses from the drop in Beijing Watertek's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Beijing Watertek vs. Invengo Information Technology | Beijing Watertek vs. HaiXin Foods Co | Beijing Watertek vs. AVCON Information Tech | Beijing Watertek vs. Fujian Anjoy Foods |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |