Correlation Between Citigroup and Qingdao NovelBeam
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By analyzing existing cross correlation between Citigroup and Qingdao NovelBeam Technology, you can compare the effects of market volatilities on Citigroup and Qingdao NovelBeam 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 Qingdao NovelBeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Qingdao NovelBeam.
Diversification Opportunities for Citigroup and Qingdao NovelBeam
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Qingdao is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Qingdao NovelBeam Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao NovelBeam 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 Qingdao NovelBeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao NovelBeam has no effect on the direction of Citigroup i.e., Citigroup and Qingdao NovelBeam go up and down completely randomly.
Pair Corralation between Citigroup and Qingdao NovelBeam
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.78 times more return on investment than Qingdao NovelBeam. However, Citigroup is 1.29 times less risky than Qingdao NovelBeam. It trades about -0.02 of its potential returns per unit of risk. Qingdao NovelBeam Technology is currently generating about -0.49 per unit of risk. If you would invest 8,051 in Citigroup on November 27, 2024 and sell it today you would lose (86.00) from holding Citigroup or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 75.0% |
| Values | Daily Returns |
Citigroup vs. Qingdao NovelBeam Technology
Performance |
| Timeline |
| Citigroup |
| Qingdao NovelBeam |
Citigroup and Qingdao NovelBeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Qingdao NovelBeam
The main advantage of trading using opposite Citigroup and Qingdao NovelBeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Qingdao NovelBeam 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 Qingdao NovelBeam will offset losses from the drop in Qingdao NovelBeam's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Qingdao NovelBeam vs. Xian International Medical | Qingdao NovelBeam vs. Rising Nonferrous Metals | Qingdao NovelBeam vs. China World Trade | Qingdao NovelBeam vs. Hengkang Medical Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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