Correlation Between Citigroup and Orinko Advanced
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By analyzing existing cross correlation between Citigroup and Orinko Advanced Plastics, you can compare the effects of market volatilities on Citigroup and Orinko Advanced 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 Orinko Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Orinko Advanced.
Diversification Opportunities for Citigroup and Orinko Advanced
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Orinko is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Orinko Advanced Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orinko Advanced Plastics 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 Orinko Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orinko Advanced Plastics has no effect on the direction of Citigroup i.e., Citigroup and Orinko Advanced go up and down completely randomly.
Pair Corralation between Citigroup and Orinko Advanced
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.9 times more return on investment than Orinko Advanced. However, Citigroup is 1.11 times less risky than Orinko Advanced. It trades about 0.26 of its potential returns per unit of risk. Orinko Advanced Plastics is currently generating about 0.06 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Orinko Advanced Plastics
Performance |
| Timeline |
| Citigroup |
| Orinko Advanced Plastics |
Citigroup and Orinko Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Orinko Advanced
The main advantage of trading using opposite Citigroup and Orinko Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Orinko Advanced 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 Orinko Advanced will offset losses from the drop in Orinko Advanced's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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