Correlation Between Citigroup and Dawning Information
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By analyzing existing cross correlation between Citigroup and Dawning Information Industry, you can compare the effects of market volatilities on Citigroup and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Dawning Information.
Diversification Opportunities for Citigroup and Dawning Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Dawning is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Citigroup i.e., Citigroup and Dawning Information go up and down completely randomly.
Pair Corralation between Citigroup and Dawning Information
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.72 times less return on investment than Dawning Information. But when comparing it to its historical volatility, Citigroup is 2.15 times less risky than Dawning Information. It trades about 0.08 of its potential returns per unit of risk. Dawning Information Industry is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,198 in Dawning Information Industry on August 29, 2024 and sell it today you would earn a total of 4,406 from holding Dawning Information Industry or generate 137.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 93.78% |
| Values | Daily Returns |
Citigroup vs. Dawning Information Industry
Performance |
| Timeline |
| Citigroup |
| Dawning Information |
Citigroup and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Dawning Information
The main advantage of trading using opposite Citigroup and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Dawning Information vs. Luyin Investment Group | Dawning Information vs. Nuode Investment Co | Dawning Information vs. Xiandai Investment Co | Dawning Information vs. Hubei Geoway Investment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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