Correlation Between Citigroup and Ador Welding
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By analyzing existing cross correlation between Citigroup and Ador Welding Limited, you can compare the effects of market volatilities on Citigroup and Ador Welding 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 Ador Welding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ador Welding.
Diversification Opportunities for Citigroup and Ador Welding
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Ador is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ador Welding Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ador Welding Limited 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 Ador Welding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ador Welding Limited has no effect on the direction of Citigroup i.e., Citigroup and Ador Welding go up and down completely randomly.
Pair Corralation between Citigroup and Ador Welding
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.03 times more return on investment than Ador Welding. However, Citigroup is 1.03 times more volatile than Ador Welding Limited. It trades about 0.12 of its potential returns per unit of risk. Ador Welding Limited is currently generating about -0.03 per unit of risk. If you would invest 6,092 in Citigroup on August 31, 2024 and sell it today you would earn a total of 924.00 from holding Citigroup or generate 15.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Citigroup vs. Ador Welding Limited
Performance |
| Timeline |
| Citigroup |
| Ador Welding Limited |
Citigroup and Ador Welding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Ador Welding
The main advantage of trading using opposite Citigroup and Ador Welding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ador Welding 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 Ador Welding will offset losses from the drop in Ador Welding's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Ador Welding vs. Juniper Hotels | Ador Welding vs. Apollo Sindoori Hotels | Ador Welding vs. Advani Hotels Resorts | Ador Welding vs. Infomedia Press Limited |
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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