Correlation Between Citigroup and Dongguan Tarry
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By analyzing existing cross correlation between Citigroup and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Citigroup and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dongguan Tarry.
Diversification Opportunities for Citigroup and Dongguan Tarry
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Dongguan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Citigroup i.e., Citigroup and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Citigroup and Dongguan Tarry
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.5 times more return on investment than Dongguan Tarry. However, Citigroup is 2.0 times less risky than Dongguan Tarry. It trades about 0.07 of its potential returns per unit of risk. Dongguan Tarry Electronics is currently generating about 0.03 per unit of risk. If you would invest 4,769 in Citigroup on October 20, 2024 and sell it today you would earn a total of 3,230 from holding Citigroup or generate 67.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.37% |
| Values | Daily Returns |
Citigroup vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Citigroup |
| Dongguan Tarry Elect |
Citigroup and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dongguan Tarry
The main advantage of trading using opposite Citigroup and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Dongguan Tarry vs. Healthcare Co | Dongguan Tarry vs. Meinian Onehealth Healthcare | Dongguan Tarry vs. Heren Health Co | Dongguan Tarry vs. Anhui Huaren 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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