Correlation Between Citigroup and Zhejiang Huayou
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By analyzing existing cross correlation between Citigroup and Zhejiang Huayou Cobalt, you can compare the effects of market volatilities on Citigroup and Zhejiang Huayou 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 Zhejiang Huayou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zhejiang Huayou.
Diversification Opportunities for Citigroup and Zhejiang Huayou
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Zhejiang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zhejiang Huayou Cobalt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Huayou Cobalt 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 Zhejiang Huayou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Huayou Cobalt has no effect on the direction of Citigroup i.e., Citigroup and Zhejiang Huayou go up and down completely randomly.
Pair Corralation between Citigroup and Zhejiang Huayou
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Zhejiang Huayou. However, Citigroup is 1.03 times more volatile than Zhejiang Huayou Cobalt. It trades about 0.23 of its potential returns per unit of risk. Zhejiang Huayou Cobalt is currently generating about -0.15 per unit of risk. If you would invest 7,087 in Citigroup on October 30, 2024 and sell it today you would earn a total of 1,020 from holding Citigroup or generate 14.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.68% |
| Values | Daily Returns |
Citigroup vs. Zhejiang Huayou Cobalt
Performance |
| Timeline |
| Citigroup |
| Zhejiang Huayou Cobalt |
Citigroup and Zhejiang Huayou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zhejiang Huayou
The main advantage of trading using opposite Citigroup and Zhejiang Huayou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zhejiang Huayou 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 Zhejiang Huayou will offset losses from the drop in Zhejiang Huayou's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zhejiang Huayou vs. Zijin Mining Group | Zhejiang Huayou vs. Wanhua Chemical Group | Zhejiang Huayou vs. Baoshan Iron Steel | Zhejiang Huayou vs. Shandong Gold Mining |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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