Correlation Between Citigroup and Shengyi Technology
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By analyzing existing cross correlation between Citigroup and Shengyi Technology Co, you can compare the effects of market volatilities on Citigroup and Shengyi 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 Shengyi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Shengyi Technology.
Diversification Opportunities for Citigroup and Shengyi Technology
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Shengyi is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Shengyi Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengyi 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 Shengyi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengyi Technology has no effect on the direction of Citigroup i.e., Citigroup and Shengyi Technology go up and down completely randomly.
Pair Corralation between Citigroup and Shengyi Technology
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.79 times more return on investment than Shengyi Technology. However, Citigroup is 1.27 times less risky than Shengyi Technology. It trades about 0.19 of its potential returns per unit of risk. Shengyi Technology Co is currently generating about -0.04 per unit of risk. If you would invest 6,077 in Citigroup on September 3, 2024 and sell it today you would earn a total of 1,010 from holding Citigroup or generate 16.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Shengyi Technology Co
Performance |
| Timeline |
| Citigroup |
| Shengyi Technology |
Citigroup and Shengyi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Shengyi Technology
The main advantage of trading using opposite Citigroup and Shengyi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Shengyi 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 Shengyi Technology will offset losses from the drop in Shengyi Technology's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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