Correlation Between Citigroup and Huali Industrial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Huali Industrial Group, you can compare the effects of market volatilities on Citigroup and Huali Industrial 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 Huali Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Huali Industrial.
Diversification Opportunities for Citigroup and Huali Industrial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Huali is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Huali Industrial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huali Industrial 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 Huali Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huali Industrial has no effect on the direction of Citigroup i.e., Citigroup and Huali Industrial go up and down completely randomly.
Pair Corralation between Citigroup and Huali Industrial
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.89 times more return on investment than Huali Industrial. However, Citigroup is 1.13 times less risky than Huali Industrial. It trades about 0.26 of its potential returns per unit of risk. Huali Industrial Group is currently generating about 0.19 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Huali Industrial Group
Performance |
| Timeline |
| Citigroup |
| Huali Industrial |
Citigroup and Huali Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Huali Industrial
The main advantage of trading using opposite Citigroup and Huali Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Huali Industrial 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 Huali Industrial will offset losses from the drop in Huali Industrial's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Huali Industrial vs. Shaanxi Broadcast TV | Huali Industrial vs. Tonghua Grape Wine | Huali Industrial vs. Chongqing Road Bridge | Huali Industrial vs. Hubeiyichang Transportation Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |