Correlation Between Citigroup and Hsin Kao
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hsin Kao 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 Hsin Kao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hsin Kao Gas, you can compare the effects of market volatilities on Citigroup and Hsin Kao 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 Hsin Kao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hsin Kao.
Diversification Opportunities for Citigroup and Hsin Kao
Average diversification
The 3 months correlation between Citigroup and Hsin is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hsin Kao Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsin Kao Gas 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 Hsin Kao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsin Kao Gas has no effect on the direction of Citigroup i.e., Citigroup and Hsin Kao go up and down completely randomly.
Pair Corralation between Citigroup and Hsin Kao
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.36 times more return on investment than Hsin Kao. However, Citigroup is 3.36 times more volatile than Hsin Kao Gas. It trades about 0.32 of its potential returns per unit of risk. Hsin Kao Gas is currently generating about -0.05 per unit of risk. If you would invest 6,235 in Citigroup on September 5, 2024 and sell it today you would earn a total of 907.00 from holding Citigroup or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Citigroup vs. Hsin Kao Gas
Performance |
| Timeline |
| Citigroup |
| Hsin Kao Gas |
Citigroup and Hsin Kao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hsin Kao
The main advantage of trading using opposite Citigroup and Hsin Kao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hsin Kao 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 Hsin Kao will offset losses from the drop in Hsin Kao's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Hsin Kao vs. Great Taipei Gas | Hsin Kao vs. Shin Shin Natural | Hsin Kao vs. Shin Hai Gas | Hsin Kao vs. National Petroleum 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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