Correlation Between Citigroup and Hwabao WP
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By analyzing existing cross correlation between Citigroup and Hwabao WP CSI, you can compare the effects of market volatilities on Citigroup and Hwabao WP 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 Hwabao WP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hwabao WP.
Diversification Opportunities for Citigroup and Hwabao WP
Poor diversification
The 3 months correlation between Citigroup and Hwabao is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hwabao WP CSI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwabao WP CSI 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 Hwabao WP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwabao WP CSI has no effect on the direction of Citigroup i.e., Citigroup and Hwabao WP go up and down completely randomly.
Pair Corralation between Citigroup and Hwabao WP
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.92 times more return on investment than Hwabao WP. However, Citigroup is 1.08 times less risky than Hwabao WP. It trades about 0.26 of its potential returns per unit of risk. Hwabao WP CSI is currently generating about 0.01 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 | Significant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Hwabao WP CSI
Performance |
| Timeline |
| Citigroup |
| Hwabao WP CSI |
Citigroup and Hwabao WP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hwabao WP
The main advantage of trading using opposite Citigroup and Hwabao WP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hwabao WP 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 Hwabao WP will offset losses from the drop in Hwabao WP's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hwabao WP vs. Ming Yang Smart | Hwabao WP vs. 159681 | Hwabao WP vs. 159005 | Hwabao WP vs. Loctek Ergonomic Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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