Correlation Between Citigroup and HMTNew Technical
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By analyzing existing cross correlation between Citigroup and HMTNew Technical, you can compare the effects of market volatilities on Citigroup and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and HMTNew Technical.
Diversification Opportunities for Citigroup and HMTNew Technical
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and HMTNew is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Citigroup i.e., Citigroup and HMTNew Technical go up and down completely randomly.
Pair Corralation between Citigroup and HMTNew Technical
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.31 times less return on investment than HMTNew Technical. But when comparing it to its historical volatility, Citigroup is 1.78 times less risky than HMTNew Technical. It trades about 0.41 of its potential returns per unit of risk. HMTNew Technical is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 3,222 in HMTNew Technical on October 23, 2024 and sell it today you would earn a total of 684.00 from holding HMTNew Technical or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.0% |
| Values | Daily Returns |
Citigroup vs. HMTNew Technical
Performance |
| Timeline |
| Citigroup |
| HMTNew Technical |
Citigroup and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and HMTNew Technical
The main advantage of trading using opposite Citigroup and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| HMTNew Technical vs. Tsingtao Brewery Co | HMTNew Technical vs. Jinhui Mining Co | HMTNew Technical vs. Chengdu Xinzhu RoadBridge | HMTNew Technical vs. Xinjiang Beixin RoadBridge |
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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