Correlation Between Citigroup and Xian LONGi
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By analyzing existing cross correlation between Citigroup and Xian LONGi Silicon, you can compare the effects of market volatilities on Citigroup and Xian LONGi 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 Xian LONGi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xian LONGi.
Diversification Opportunities for Citigroup and Xian LONGi
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Xian is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xian LONGi Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian LONGi Silicon 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 Xian LONGi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian LONGi Silicon has no effect on the direction of Citigroup i.e., Citigroup and Xian LONGi go up and down completely randomly.
Pair Corralation between Citigroup and Xian LONGi
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.59 times more return on investment than Xian LONGi. However, Citigroup is 1.69 times less risky than Xian LONGi. It trades about 0.07 of its potential returns per unit of risk. Xian LONGi Silicon is currently generating about 0.01 per unit of risk. If you would invest 6,079 in Citigroup on August 30, 2024 and sell it today you would earn a total of 937.00 from holding Citigroup or generate 15.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.03% |
| Values | Daily Returns |
Citigroup vs. Xian LONGi Silicon
Performance |
| Timeline |
| Citigroup |
| Xian LONGi Silicon |
Citigroup and Xian LONGi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Xian LONGi
The main advantage of trading using opposite Citigroup and Xian LONGi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xian LONGi 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 Xian LONGi will offset losses from the drop in Xian LONGi's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Xian LONGi vs. Lander Sports Development | Xian LONGi vs. Hubeiyichang Transportation Group | Xian LONGi vs. XCMG Construction Machinery | Xian LONGi vs. Jiangsu Jinling Sports |
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 CEOs Directory module to screen CEOs from public companies around the world.
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