Correlation Between Citigroup and Sinher Technology
Can any of the company-specific risk be diversified away by investing in both Citigroup and Sinher 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 Sinher Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Sinher Technology, you can compare the effects of market volatilities on Citigroup and Sinher 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 Sinher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sinher Technology.
Diversification Opportunities for Citigroup and Sinher Technology
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Sinher is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sinher Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinher 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 Sinher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinher Technology has no effect on the direction of Citigroup i.e., Citigroup and Sinher Technology go up and down completely randomly.
Pair Corralation between Citigroup and Sinher Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.56 times more return on investment than Sinher Technology. However, Citigroup is 1.56 times more volatile than Sinher Technology. It trades about 0.29 of its potential returns per unit of risk. Sinher Technology is currently generating about -0.19 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Sinher Technology
Performance |
| Timeline |
| Citigroup |
| Sinher Technology |
Citigroup and Sinher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sinher Technology
The main advantage of trading using opposite Citigroup and Sinher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sinher 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 Sinher Technology will offset losses from the drop in Sinher Technology's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Sinher Technology vs. Hsing Ta Cement | Sinher Technology vs. Capital Futures Corp | Sinher Technology vs. First Insurance Co | Sinher Technology vs. Yem Chio 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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