Correlation Between Citigroup and Intai Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Intai Technology 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 Intai Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Intai Technology, you can compare the effects of market volatilities on Citigroup and Intai Technology 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 Intai Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Intai Technology.
Diversification Opportunities for Citigroup and Intai Technology
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Intai is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Intai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intai Technology 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 Intai Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intai Technology has no effect on the direction of Citigroup i.e., Citigroup and Intai Technology go up and down completely randomly.
Pair Corralation between Citigroup and Intai Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.75 times more return on investment than Intai Technology. However, Citigroup is 1.75 times more volatile than Intai Technology. It trades about 0.11 of its potential returns per unit of risk. Intai Technology is currently generating about -0.01 per unit of risk. If you would invest 4,714 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,373 from holding Citigroup or generate 50.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
Citigroup vs. Intai Technology
Performance |
| Timeline |
| Citigroup |
| Intai Technology |
Citigroup and Intai Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Intai Technology
The main advantage of trading using opposite Citigroup and Intai Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Intai Technology 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 Intai Technology will offset losses from the drop in Intai Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Intai Technology vs. San Shing Fastech | Intai Technology vs. QST International | Intai Technology vs. WiseChip Semiconductor | Intai Technology vs. Novatek Microelectronics Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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