Correlation Between Citigroup and Changsha DIALINE
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By analyzing existing cross correlation between Citigroup and Changsha DIALINE New, you can compare the effects of market volatilities on Citigroup and Changsha DIALINE 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 Changsha DIALINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Changsha DIALINE.
Diversification Opportunities for Citigroup and Changsha DIALINE
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Changsha is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Changsha DIALINE New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changsha DIALINE New 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 Changsha DIALINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changsha DIALINE New has no effect on the direction of Citigroup i.e., Citigroup and Changsha DIALINE go up and down completely randomly.
Pair Corralation between Citigroup and Changsha DIALINE
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.46 times more return on investment than Changsha DIALINE. However, Citigroup is 2.17 times less risky than Changsha DIALINE. It trades about 0.07 of its potential returns per unit of risk. Changsha DIALINE New 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. Changsha DIALINE New
Performance |
| Timeline |
| Citigroup |
| Changsha DIALINE New |
Citigroup and Changsha DIALINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Changsha DIALINE
The main advantage of trading using opposite Citigroup and Changsha DIALINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Changsha DIALINE 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 Changsha DIALINE will offset losses from the drop in Changsha DIALINE's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Changsha DIALINE vs. Mingchen Health Co | Changsha DIALINE vs. Yunnan Jianzhijia Health Chain | Changsha DIALINE vs. Shandong Polymer Biochemicals | Changsha DIALINE vs. Shanghai Rongtai Health |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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