Correlation Between Citigroup and Nsfocus Information
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By analyzing existing cross correlation between Citigroup and Nsfocus Information Technology, you can compare the effects of market volatilities on Citigroup and Nsfocus Information 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 Nsfocus Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nsfocus Information.
Diversification Opportunities for Citigroup and Nsfocus Information
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Nsfocus is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nsfocus Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nsfocus Information 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 Nsfocus Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nsfocus Information has no effect on the direction of Citigroup i.e., Citigroup and Nsfocus Information go up and down completely randomly.
Pair Corralation between Citigroup and Nsfocus Information
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.29 times less return on investment than Nsfocus Information. But when comparing it to its historical volatility, Citigroup is 2.28 times less risky than Nsfocus Information. It trades about 0.08 of its potential returns per unit of risk. Nsfocus Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 539.00 in Nsfocus Information Technology on October 13, 2024 and sell it today you would earn a total of 91.00 from holding Nsfocus Information Technology or generate 16.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.3% |
| Values | Daily Returns |
Citigroup vs. Nsfocus Information Technology
Performance |
| Timeline |
| Citigroup |
| Nsfocus Information |
Citigroup and Nsfocus Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nsfocus Information
The main advantage of trading using opposite Citigroup and Nsfocus Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nsfocus Information 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 Nsfocus Information will offset losses from the drop in Nsfocus Information's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nsfocus Information vs. Dareway Software Co | Nsfocus Information vs. Luyin Investment Group | Nsfocus Information vs. Cansino Biologics | Nsfocus Information vs. Hubei Geoway Investment |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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