Correlation Between Citigroup and AJ Advance
Can any of the company-specific risk be diversified away by investing in both Citigroup and AJ Advance 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 AJ Advance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and AJ Advance Technology, you can compare the effects of market volatilities on Citigroup and AJ Advance 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 AJ Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and AJ Advance.
Diversification Opportunities for Citigroup and AJ Advance
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and AJA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and AJ Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Advance Technology 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 AJ Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Advance Technology has no effect on the direction of Citigroup i.e., Citigroup and AJ Advance go up and down completely randomly.
Pair Corralation between Citigroup and AJ Advance
Taking into account the 90-day investment horizon Citigroup is expected to generate 54.3 times less return on investment than AJ Advance. But when comparing it to its historical volatility, Citigroup is 47.39 times less risky than AJ Advance. It trades about 0.07 of its potential returns per unit of risk. AJ Advance Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 23.00 in AJ Advance Technology on August 30, 2024 and sell it today you would lose (8.00) from holding AJ Advance Technology or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.83% |
| Values | Daily Returns |
Citigroup vs. AJ Advance Technology
Performance |
| Timeline |
| Citigroup |
| AJ Advance Technology |
Citigroup and AJ Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and AJ Advance
The main advantage of trading using opposite Citigroup and AJ Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, AJ Advance 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 AJ Advance will offset losses from the drop in AJ Advance's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| AJ Advance vs. CP ALL Public | AJ Advance vs. Bangkok Dusit Medical | AJ Advance vs. Central Pattana Public | AJ Advance vs. Advanced Info Service |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |