Correlation Between Citigroup and China Galaxy
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By analyzing existing cross correlation between Citigroup and China Galaxy Securities, you can compare the effects of market volatilities on Citigroup and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and China Galaxy.
Diversification Opportunities for Citigroup and China Galaxy
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and China is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Citigroup i.e., Citigroup and China Galaxy go up and down completely randomly.
Pair Corralation between Citigroup and China Galaxy
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.93 times more return on investment than China Galaxy. However, Citigroup is 1.08 times less risky than China Galaxy. It trades about 0.23 of its potential returns per unit of risk. China Galaxy Securities is currently generating about -0.18 per unit of risk. If you would invest 7,149 in Citigroup on October 17, 2024 and sell it today you would earn a total of 678.00 from holding Citigroup or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. China Galaxy Securities
Performance |
| Timeline |
| Citigroup |
| China Galaxy Securities |
Citigroup and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and China Galaxy
The main advantage of trading using opposite Citigroup and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| China Galaxy vs. Jinlong Machinery Electronic | China Galaxy vs. Iat Automobile Technology | China Galaxy vs. Huasi Agricultural Development | China Galaxy vs. Masterwork Machinery |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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