Correlation Between Citigroup and Guangzhou Haozhi
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By analyzing existing cross correlation between Citigroup and Guangzhou Haozhi Industrial, you can compare the effects of market volatilities on Citigroup and Guangzhou Haozhi 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 Haozhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Haozhi.
Diversification Opportunities for Citigroup and Guangzhou Haozhi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Haozhi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Haozhi Ind 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 Haozhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Haozhi Ind has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Haozhi go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Haozhi
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.41 times more return on investment than Guangzhou Haozhi. However, Citigroup is 2.44 times less risky than Guangzhou Haozhi. It trades about 0.12 of its potential returns per unit of risk. Guangzhou Haozhi Industrial is currently generating about 0.02 per unit of risk. If you would invest 4,411 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,573 from holding Citigroup or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.6% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Haozhi Industrial
Performance |
| Timeline |
| Citigroup |
| Guangzhou Haozhi Ind |
Citigroup and Guangzhou Haozhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Haozhi
The main advantage of trading using opposite Citigroup and Guangzhou Haozhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Haozhi 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 Haozhi will offset losses from the drop in Guangzhou Haozhi's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Guangzhou Haozhi vs. Biwin Storage Technology | Guangzhou Haozhi vs. PetroChina Co Ltd | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. China Construction Bank |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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