Correlation Between Citigroup and Guangzhou Fangbang
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By analyzing existing cross correlation between Citigroup and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on Citigroup and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Guangzhou Fangbang.
Diversification Opportunities for Citigroup and Guangzhou Fangbang
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Guangzhou is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of Citigroup i.e., Citigroup and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between Citigroup and Guangzhou Fangbang
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.39 times more return on investment than Guangzhou Fangbang. However, Citigroup is 2.56 times less risky than Guangzhou Fangbang. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about 0.0 per unit of risk. If you would invest 4,783 in Citigroup on October 16, 2024 and sell it today you would earn a total of 2,494 from holding Citigroup or generate 52.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.76% |
| Values | Daily Returns |
Citigroup vs. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| Citigroup |
| Guangzhou Fangbang |
Citigroup and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Guangzhou Fangbang
The main advantage of trading using opposite Citigroup and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang's long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Guangzhou Fangbang vs. Universal Scientific Industrial | Guangzhou Fangbang vs. Jiaozuo Wanfang Aluminum | Guangzhou Fangbang vs. Porton Fine Chemicals | Guangzhou Fangbang vs. Shanghai Yanpu Metal |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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