Correlation Between Citigroup and Guangzhou Boji
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By analyzing existing cross correlation between Citigroup and Guangzhou Boji Medical, you can compare the effects of market volatilities on Citigroup and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Boji.
Diversification Opportunities for Citigroup and Guangzhou Boji
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Guangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Boji
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.5 times more return on investment than Guangzhou Boji. However, Citigroup is 2.02 times less risky than Guangzhou Boji. It trades about 0.07 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about 0.02 per unit of risk. If you would invest 4,218 in Citigroup on September 2, 2024 and sell it today you would earn a total of 2,869 from holding Citigroup or generate 68.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Citigroup |
| Guangzhou Boji Medical |
Citigroup and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Boji
The main advantage of trading using opposite Citigroup and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Guangzhou Boji vs. China Life Insurance | Guangzhou Boji vs. Cinda Securities Co | Guangzhou Boji vs. Piotech Inc A | Guangzhou Boji vs. Shanghai OPM Biosciences |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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