Correlation Between Citigroup and National Silicon
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By analyzing existing cross correlation between Citigroup and National Silicon Industry, you can compare the effects of market volatilities on Citigroup and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and National Silicon.
Diversification Opportunities for Citigroup and National Silicon
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and National is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Citigroup i.e., Citigroup and National Silicon go up and down completely randomly.
Pair Corralation between Citigroup and National Silicon
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.57 times more return on investment than National Silicon. However, Citigroup is 1.74 times less risky than National Silicon. It trades about 0.07 of its potential returns per unit of risk. National Silicon Industry is currently generating about 0.02 per unit of risk. If you would invest 4,206 in Citigroup on August 26, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.18% |
| Values | Daily Returns |
Citigroup vs. National Silicon Industry
Performance |
| Timeline |
| Citigroup |
| National Silicon Industry |
Citigroup and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and National Silicon
The main advantage of trading using opposite Citigroup and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| National Silicon vs. Lutian Machinery Co | National Silicon vs. China Longyuan Power | National Silicon vs. Changshu Tongrun Auto | National Silicon vs. PetroChina Co Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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