Correlation Between Citigroup and Semiconductor Manufacturing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Semiconductor Manufacturing Intl, you can compare the effects of market volatilities on Citigroup and Semiconductor Manufacturing 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 Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Semiconductor Manufacturing.
Diversification Opportunities for Citigroup and Semiconductor Manufacturing
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Semiconductor is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing 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 Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of Citigroup i.e., Citigroup and Semiconductor Manufacturing go up and down completely randomly.
Pair Corralation between Citigroup and Semiconductor Manufacturing
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.78 times less return on investment than Semiconductor Manufacturing. But when comparing it to its historical volatility, Citigroup is 1.84 times less risky than Semiconductor Manufacturing. It trades about 0.07 of its potential returns per unit of risk. Semiconductor Manufacturing Intl is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,180 in Semiconductor Manufacturing Intl on September 3, 2024 and sell it today you would earn a total of 4,830 from holding Semiconductor Manufacturing Intl or generate 115.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Citigroup vs. Semiconductor Manufacturing In
Performance |
| Timeline |
| Citigroup |
| Semiconductor Manufacturing |
Citigroup and Semiconductor Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Semiconductor Manufacturing
The main advantage of trading using opposite Citigroup and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |