Correlation Between Citigroup and Zhuzhou Kibing
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By analyzing existing cross correlation between Citigroup and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Citigroup and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zhuzhou Kibing.
Diversification Opportunities for Citigroup and Zhuzhou Kibing
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Zhuzhou is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Citigroup i.e., Citigroup and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Citigroup and Zhuzhou Kibing
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.95 times more return on investment than Zhuzhou Kibing. However, Citigroup is 1.05 times less risky than Zhuzhou Kibing. It trades about 0.22 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.33 per unit of risk. If you would invest 6,360 in Citigroup on August 29, 2024 and sell it today you would earn a total of 656.00 from holding Citigroup or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Citigroup |
| Zhuzhou Kibing Group |
Citigroup and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zhuzhou Kibing
The main advantage of trading using opposite Citigroup and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zhuzhou Kibing vs. Guangzhou Haige Communications | Zhuzhou Kibing vs. Eastern Communications Co | Zhuzhou Kibing vs. Sunwave Communications Co | Zhuzhou Kibing vs. Shenzhen Kexin Communication |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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