Correlation Between Citigroup and China Carbon
Can any of the company-specific risk be diversified away by investing in both Citigroup and China Carbon 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 China Carbon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and China Carbon Graphit, you can compare the effects of market volatilities on Citigroup and China Carbon 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 China Carbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and China Carbon.
Diversification Opportunities for Citigroup and China Carbon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and China Carbon Graphit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Carbon Graphit 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 China Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Carbon Graphit has no effect on the direction of Citigroup i.e., Citigroup and China Carbon go up and down completely randomly.
Pair Corralation between Citigroup and China Carbon
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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Citigroup vs. China Carbon Graphit
Performance |
| Timeline |
| Citigroup |
| China Carbon Graphit |
Citigroup and China Carbon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and China Carbon
The main advantage of trading using opposite Citigroup and China Carbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, China Carbon 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 China Carbon will offset losses from the drop in China Carbon's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| China Carbon vs. Focus Graphite | China Carbon vs. China Power Equipment | China Carbon vs. China Sun Grp | China Carbon vs. Northern Graphite |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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