Correlation Between Citigroup and Jiangxi JDL
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By analyzing existing cross correlation between Citigroup and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Citigroup and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Jiangxi JDL.
Diversification Opportunities for Citigroup and Jiangxi JDL
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Jiangxi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Citigroup i.e., Citigroup and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Citigroup and Jiangxi JDL
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.12 times more return on investment than Jiangxi JDL. However, Citigroup is 1.12 times more volatile than Jiangxi JDL Environmental. It trades about 0.33 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.16 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Citigroup |
| Jiangxi JDL Environmental |
Citigroup and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Jiangxi JDL
The main advantage of trading using opposite Citigroup and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Jiangxi JDL vs. Chinese Universe Publishing | Jiangxi JDL vs. Hainan Airlines Co | Jiangxi JDL vs. Time Publishing and | Jiangxi JDL vs. CSSC Offshore Marine |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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