Correlation Between Citigroup and Hitechpros
Can any of the company-specific risk be diversified away by investing in both Citigroup and Hitechpros 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 Hitechpros into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Hitechpros, you can compare the effects of market volatilities on Citigroup and Hitechpros 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 Hitechpros. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hitechpros.
Diversification Opportunities for Citigroup and Hitechpros
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Hitechpros is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hitechpros in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitechpros 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 Hitechpros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitechpros has no effect on the direction of Citigroup i.e., Citigroup and Hitechpros go up and down completely randomly.
Pair Corralation between Citigroup and Hitechpros
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.15 times less return on investment than Hitechpros. But when comparing it to its historical volatility, Citigroup is 3.09 times less risky than Hitechpros. It trades about 0.08 of its potential returns per unit of risk. Hitechpros is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,351 in Hitechpros on August 27, 2024 and sell it today you would earn a total of 199.00 from holding Hitechpros or generate 14.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
Citigroup vs. Hitechpros
Performance |
| Timeline |
| Citigroup |
| Hitechpros |
Citigroup and Hitechpros Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hitechpros
The main advantage of trading using opposite Citigroup and Hitechpros positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hitechpros 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 Hitechpros will offset losses from the drop in Hitechpros' long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Hitechpros vs. Sartorius Stedim Biotech | Hitechpros vs. Lectra SA | Hitechpros vs. Teleperformance SE | Hitechpros vs. Trigano SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |