Correlation Between Citigroup and Senao Networks
Can any of the company-specific risk be diversified away by investing in both Citigroup and Senao Networks at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Senao Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Senao Networks, you can compare the effects of market volatilities on Citigroup and Senao Networks 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 Senao Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Senao Networks.
Diversification Opportunities for Citigroup and Senao Networks
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Citigroup and Senao is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Senao Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senao Networks 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 Senao Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senao Networks has no effect on the direction of Citigroup i.e., Citigroup and Senao Networks go up and down completely randomly.
Pair Corralation between Citigroup and Senao Networks
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.56 times more return on investment than Senao Networks. However, Citigroup is 1.78 times less risky than Senao Networks. It trades about 0.07 of its potential returns per unit of risk. Senao Networks is currently generating about 0.01 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.78% |
| Values | Daily Returns |
Citigroup vs. Senao Networks
Performance |
| Timeline |
| Citigroup |
| Senao Networks |
Citigroup and Senao Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Senao Networks
The main advantage of trading using opposite Citigroup and Senao Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Senao Networks 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 Senao Networks will offset losses from the drop in Senao Networks' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Senao Networks vs. Accton Technology Corp | Senao Networks vs. Arcadyan Technology Corp | Senao Networks vs. Advanced Ceramic X | Senao Networks vs. Gemtek Technology Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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