Correlation Between Citigroup and Pengxin International
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By analyzing existing cross correlation between Citigroup and Pengxin International Mining, you can compare the effects of market volatilities on Citigroup and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Pengxin International.
Diversification Opportunities for Citigroup and Pengxin International
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Pengxin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Citigroup i.e., Citigroup and Pengxin International go up and down completely randomly.
Pair Corralation between Citigroup and Pengxin International
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.52 times more return on investment than Pengxin International. However, Citigroup is 1.9 times less risky than Pengxin International. It trades about 0.08 of its potential returns per unit of risk. Pengxin International Mining is currently generating about 0.01 per unit of risk. If you would invest 4,525 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,562 from holding Citigroup or generate 56.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.99% |
| Values | Daily Returns |
Citigroup vs. Pengxin International Mining
Performance |
| Timeline |
| Citigroup |
| Pengxin International |
Citigroup and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Pengxin International
The main advantage of trading using opposite Citigroup and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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