Correlation Between Citigroup and Ligao Foods
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By analyzing existing cross correlation between Citigroup and Ligao Foods CoLtd, you can compare the effects of market volatilities on Citigroup and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ligao Foods.
Diversification Opportunities for Citigroup and Ligao Foods
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Ligao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Citigroup i.e., Citigroup and Ligao Foods go up and down completely randomly.
Pair Corralation between Citigroup and Ligao Foods
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than Ligao Foods. However, Citigroup is 1.77 times less risky than Ligao Foods. It trades about 0.07 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.06 per unit of risk. If you would invest 4,117 in Citigroup on August 28, 2024 and sell it today you would earn a total of 2,958 from holding Citigroup or generate 71.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Citigroup vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Citigroup |
| Ligao Foods CoLtd |
Citigroup and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ligao Foods
The main advantage of trading using opposite Citigroup and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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