Correlation Between Citigroup and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both Citigroup and Bangkok Bank 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 Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Bangkok Bank Public, you can compare the effects of market volatilities on Citigroup and Bangkok Bank 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 Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Bangkok Bank.
Diversification Opportunities for Citigroup and Bangkok Bank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Bangkok is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public 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 Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of Citigroup i.e., Citigroup and Bangkok Bank go up and down completely randomly.
Pair Corralation between Citigroup and Bangkok Bank
Taking into account the 90-day investment horizon Citigroup is expected to under-perform the Bangkok Bank. But the stock apears to be less risky and, when comparing its historical volatility, Citigroup is 1.66 times less risky than Bangkok Bank. The stock trades about -0.04 of its potential returns per unit of risk. The Bangkok Bank Public is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 380.00 in Bangkok Bank Public on September 19, 2024 and sell it today you would earn a total of 35.00 from holding Bangkok Bank Public or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. Bangkok Bank Public
Performance |
| Timeline |
| Citigroup |
| Bangkok Bank Public |
Citigroup and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Bangkok Bank
The main advantage of trading using opposite Citigroup and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Bangkok Bank vs. Morningstar Unconstrained Allocation | Bangkok Bank vs. Bondbloxx ETF Trust | Bangkok Bank vs. Spring Valley Acquisition | Bangkok Bank vs. Bondbloxx ETF Trust |
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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