Correlation Between Citigroup and Nanning Chemical
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By analyzing existing cross correlation between Citigroup and Nanning Chemical Industry, you can compare the effects of market volatilities on Citigroup and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nanning Chemical.
Diversification Opportunities for Citigroup and Nanning Chemical
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Nanning is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Citigroup i.e., Citigroup and Nanning Chemical go up and down completely randomly.
Pair Corralation between Citigroup and Nanning Chemical
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.55 times more return on investment than Nanning Chemical. However, Citigroup is 1.82 times less risky than Nanning Chemical. It trades about 0.07 of its potential returns per unit of risk. Nanning Chemical Industry is currently generating about 0.02 per unit of risk. If you would invest 4,733 in Citigroup on October 27, 2024 and sell it today you would earn a total of 3,415 from holding Citigroup or generate 72.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.57% |
| Values | Daily Returns |
Citigroup vs. Nanning Chemical Industry
Performance |
| Timeline |
| Citigroup |
| Nanning Chemical Industry |
Citigroup and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nanning Chemical
The main advantage of trading using opposite Citigroup and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nanning Chemical vs. China Publishing Media | Nanning Chemical vs. Heilongjiang Publishing Media | Nanning Chemical vs. MayAir Technology Co | Nanning Chemical vs. Thinkingdom Media Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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