Correlation Between Citigroup and Wuhan Hvsen
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By analyzing existing cross correlation between Citigroup and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Citigroup and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wuhan Hvsen.
Diversification Opportunities for Citigroup and Wuhan Hvsen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and Wuhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Citigroup i.e., Citigroup and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Citigroup and Wuhan Hvsen
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.09 times less return on investment than Wuhan Hvsen. But when comparing it to its historical volatility, Citigroup is 1.17 times less risky than Wuhan Hvsen. It trades about 0.26 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,106 in Wuhan Hvsen Biotechnology on September 1, 2024 and sell it today you would earn a total of 143.00 from holding Wuhan Hvsen Biotechnology or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Citigroup |
| Wuhan Hvsen Biotechnology |
Citigroup and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wuhan Hvsen
The main advantage of trading using opposite Citigroup and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wuhan Hvsen vs. PetroChina Co Ltd | Wuhan Hvsen vs. China Mobile Limited | Wuhan Hvsen vs. CNOOC Limited | Wuhan Hvsen vs. Ping An Insurance |
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 Stocks Directory module to find actively traded stocks across global markets.
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