Correlation Between Citigroup and Wing Yip
Can any of the company-specific risk be diversified away by investing in both Citigroup and Wing Yip at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Wing Yip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Wing Yip Food, you can compare the effects of market volatilities on Citigroup and Wing Yip 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 Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Wing Yip.
Diversification Opportunities for Citigroup and Wing Yip
Very weak diversification
The 3 months correlation between Citigroup and Wing is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food 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 Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of Citigroup i.e., Citigroup and Wing Yip go up and down completely randomly.
Pair Corralation between Citigroup and Wing Yip
Taking into account the 90-day investment horizon Citigroup is expected to generate 5.37 times less return on investment than Wing Yip. But when comparing it to its historical volatility, Citigroup is 4.27 times less risky than Wing Yip. It trades about 0.09 of its potential returns per unit of risk. Wing Yip Food is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 88,300 in Wing Yip Food on August 27, 2024 and sell it today you would earn a total of 149,700 from holding Wing Yip Food or generate 169.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.74% |
| Values | Daily Returns |
Citigroup vs. Wing Yip Food
Performance |
| Timeline |
| Citigroup |
| Wing Yip Food |
Citigroup and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Wing Yip
The main advantage of trading using opposite Citigroup and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Wing Yip vs. Alton Sports CoLtd | Wing Yip vs. Tamul Multimedia Co | Wing Yip vs. MEDIANA CoLtd | Wing Yip vs. T3 Entertainment Co |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |