Correlation Between Citigroup and Wintao Communications
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By analyzing existing cross correlation between Citigroup and Wintao Communications Co, you can compare the effects of market volatilities on Citigroup and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wintao Communications.
Diversification Opportunities for Citigroup and Wintao Communications
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Wintao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Citigroup i.e., Citigroup and Wintao Communications go up and down completely randomly.
Pair Corralation between Citigroup and Wintao Communications
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.43 times more return on investment than Wintao Communications. However, Citigroup is 2.33 times less risky than Wintao Communications. It trades about 0.08 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.02 per unit of risk. If you would invest 4,054 in Citigroup on September 12, 2024 and sell it today you would earn a total of 3,196 from holding Citigroup or generate 78.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Citigroup vs. Wintao Communications Co
Performance |
| Timeline |
| Citigroup |
| Wintao Communications |
Citigroup and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wintao Communications
The main advantage of trading using opposite Citigroup and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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