Correlation Between Citigroup and Crescendo Bhd
Can any of the company-specific risk be diversified away by investing in both Citigroup and Crescendo Bhd at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Crescendo Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Crescendo Bhd, you can compare the effects of market volatilities on Citigroup and Crescendo Bhd 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 Crescendo Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Crescendo Bhd.
Diversification Opportunities for Citigroup and Crescendo Bhd
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Crescendo is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Crescendo Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescendo Bhd 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 Crescendo Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescendo Bhd has no effect on the direction of Citigroup i.e., Citigroup and Crescendo Bhd go up and down completely randomly.
Pair Corralation between Citigroup and Crescendo Bhd
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.89 times less return on investment than Crescendo Bhd. But when comparing it to its historical volatility, Citigroup is 1.76 times less risky than Crescendo Bhd. It trades about 0.08 of its potential returns per unit of risk. Crescendo Bhd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 35.00 in Crescendo Bhd on September 14, 2024 and sell it today you would earn a total of 110.00 from holding Crescendo Bhd or generate 314.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.65% |
| Values | Daily Returns |
Citigroup vs. Crescendo Bhd
Performance |
| Timeline |
| Citigroup |
| Crescendo Bhd |
Citigroup and Crescendo Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Crescendo Bhd
The main advantage of trading using opposite Citigroup and Crescendo Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Crescendo Bhd 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 Crescendo Bhd will offset losses from the drop in Crescendo Bhd's long position.The idea behind Citigroup and Crescendo Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Crescendo Bhd vs. Malayan Banking Bhd | Crescendo Bhd vs. Public Bank Bhd | Crescendo Bhd vs. Petronas Chemicals Group | Crescendo Bhd vs. Tenaga Nasional Bhd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |