Correlation Between Citigroup and Ningbo Boway
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By analyzing existing cross correlation between Citigroup and Ningbo Boway Alloy, you can compare the effects of market volatilities on Citigroup and Ningbo Boway 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 Ningbo Boway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ningbo Boway.
Diversification Opportunities for Citigroup and Ningbo Boway
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Ningbo is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ningbo Boway Alloy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Boway Alloy 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 Ningbo Boway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Boway Alloy has no effect on the direction of Citigroup i.e., Citigroup and Ningbo Boway go up and down completely randomly.
Pair Corralation between Citigroup and Ningbo Boway
Taking into account the 90-day investment horizon Citigroup is expected to generate 6.04 times less return on investment than Ningbo Boway. But when comparing it to its historical volatility, Citigroup is 1.66 times less risky than Ningbo Boway. It trades about 0.05 of its potential returns per unit of risk. Ningbo Boway Alloy is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,840 in Ningbo Boway Alloy on September 28, 2024 and sell it today you would earn a total of 161.00 from holding Ningbo Boway Alloy or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Citigroup vs. Ningbo Boway Alloy
Performance |
| Timeline |
| Citigroup |
| Ningbo Boway Alloy |
Citigroup and Ningbo Boway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ningbo Boway
The main advantage of trading using opposite Citigroup and Ningbo Boway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ningbo Boway 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 Ningbo Boway will offset losses from the drop in Ningbo Boway's long position.The idea behind Citigroup and Ningbo Boway Alloy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Ningbo Boway vs. Shanghai Broadband Technology | Ningbo Boway vs. Anhui Huaheng Biotechnology | Ningbo Boway vs. Sichuan Hebang Biotechnology | Ningbo Boway vs. RoadMain T Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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