Correlation Between Citigroup and Wuhan Xianglong
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By analyzing existing cross correlation between Citigroup and Wuhan Xianglong Power, you can compare the effects of market volatilities on Citigroup and Wuhan Xianglong 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 Wuhan Xianglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wuhan Xianglong.
Diversification Opportunities for Citigroup and Wuhan Xianglong
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Wuhan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wuhan Xianglong Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Xianglong Power 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 Wuhan Xianglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Xianglong Power has no effect on the direction of Citigroup i.e., Citigroup and Wuhan Xianglong go up and down completely randomly.
Pair Corralation between Citigroup and Wuhan Xianglong
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Wuhan Xianglong. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.46 times less risky than Wuhan Xianglong. The stock trades about -0.02 of its potential returns per unit of risk. The Wuhan Xianglong Power is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 929.00 in Wuhan Xianglong Power on November 27, 2024 and sell it today you would earn a total of 65.00 from holding Wuhan Xianglong Power or generate 7.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Citigroup vs. Wuhan Xianglong Power
Performance |
| Timeline |
| Citigroup |
| Wuhan Xianglong Power |
Citigroup and Wuhan Xianglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wuhan Xianglong
The main advantage of trading using opposite Citigroup and Wuhan Xianglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wuhan Xianglong 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 Wuhan Xianglong will offset losses from the drop in Wuhan Xianglong's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Wuhan Xianglong vs. Shenzhen Noposion Agrochemicals | Wuhan Xianglong vs. Jiangsu GDK Biotechnology | Wuhan Xianglong vs. Hefei Metalforming Mach | Wuhan Xianglong vs. Liaoning Chengda Biotechnology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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