Correlation Between Citigroup and Hunan Tyen
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By analyzing existing cross correlation between Citigroup and Hunan Tyen Machinery, you can compare the effects of market volatilities on Citigroup and Hunan Tyen 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 Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hunan Tyen.
Diversification Opportunities for Citigroup and Hunan Tyen
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Hunan is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery 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 Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Citigroup i.e., Citigroup and Hunan Tyen go up and down completely randomly.
Pair Corralation between Citigroup and Hunan Tyen
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.56 times more return on investment than Hunan Tyen. However, Citigroup is 1.78 times less risky than Hunan Tyen. It trades about 0.07 of its potential returns per unit of risk. Hunan Tyen Machinery is currently generating about 0.01 per unit of risk. If you would invest 4,206 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.18% |
| Values | Daily Returns |
Citigroup vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Citigroup |
| Hunan Tyen Machinery |
Citigroup and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hunan Tyen
The main advantage of trading using opposite Citigroup and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Canadian Imperial Bank |
| Hunan Tyen vs. Jinling Hotel Corp | Hunan Tyen vs. BTG Hotels Group | Hunan Tyen vs. Epoxy Base Electronic | Hunan Tyen vs. Fiberhome Telecommunication Technologies |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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