Correlation Between Citigroup and Weihai Guangwei
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By analyzing existing cross correlation between Citigroup and Weihai Guangwei Composites, you can compare the effects of market volatilities on Citigroup and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Weihai Guangwei.
Diversification Opportunities for Citigroup and Weihai Guangwei
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Weihai is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Citigroup i.e., Citigroup and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Citigroup and Weihai Guangwei
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.65 times more return on investment than Weihai Guangwei. However, Citigroup is 1.54 times less risky than Weihai Guangwei. It trades about 0.07 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about -0.01 per unit of risk. If you would invest 4,293 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,794 from holding Citigroup or generate 65.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Citigroup vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Citigroup |
| Weihai Guangwei Comp |
Citigroup and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Weihai Guangwei
The main advantage of trading using opposite Citigroup and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Weihai Guangwei vs. Shandong Homey Aquatic | Weihai Guangwei vs. Xinhua Winshare Publishing | Weihai Guangwei vs. Luolai Home Textile | Weihai Guangwei vs. Changjiang Publishing Media |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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