Correlation Between Citigroup and Western Superconducting
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By analyzing existing cross correlation between Citigroup and Western Superconducting Tech, you can compare the effects of market volatilities on Citigroup and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Western Superconducting.
Diversification Opportunities for Citigroup and Western Superconducting
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Western is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Citigroup i.e., Citigroup and Western Superconducting go up and down completely randomly.
Pair Corralation between Citigroup and Western Superconducting
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.68 times more return on investment than Western Superconducting. However, Citigroup is 1.46 times less risky than Western Superconducting. It trades about 0.07 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about 0.0 per unit of risk. If you would invest 4,414 in Citigroup on January 23, 2025 and sell it today you would earn a total of 2,041 from holding Citigroup or generate 46.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.55% |
| Values | Daily Returns |
Citigroup vs. Western Superconducting Tech
Performance |
| Timeline |
| Citigroup |
| Western Superconducting |
Citigroup and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Western Superconducting
The main advantage of trading using opposite Citigroup and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.| Citigroup vs. Barclays PLC ADR | Citigroup vs. ING Group NV | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Natwest Group PLC |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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