Correlation Between Citigroup and Advantest Corp
Can any of the company-specific risk be diversified away by investing in both Citigroup and Advantest Corp 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 Advantest Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Advantest Corp DRC, you can compare the effects of market volatilities on Citigroup and Advantest Corp 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 Advantest Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Advantest Corp.
Diversification Opportunities for Citigroup and Advantest Corp
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Advantest is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Advantest Corp DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantest Corp DRC 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 Advantest Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantest Corp DRC has no effect on the direction of Citigroup i.e., Citigroup and Advantest Corp go up and down completely randomly.
Pair Corralation between Citigroup and Advantest Corp
If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Citigroup vs. Advantest Corp DRC
Performance |
| Timeline |
| Citigroup |
| Advantest Corp DRC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Advantest Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Advantest Corp
The main advantage of trading using opposite Citigroup and Advantest Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Advantest Corp 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 Advantest Corp will offset losses from the drop in Advantest Corp's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Advantest Corp vs. Disco Corp ADR | Advantest Corp vs. Tokyo Electron | Advantest Corp vs. Lasertec | Advantest Corp vs. BE Semiconductor Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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