Correlation Between Citigroup and First High
Can any of the company-specific risk be diversified away by investing in both Citigroup and First High 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 First High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and First High School Education, you can compare the effects of market volatilities on Citigroup and First High 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 First High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and First High.
Diversification Opportunities for Citigroup and First High
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and First is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and First High School Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First High School 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 First High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First High School has no effect on the direction of Citigroup i.e., Citigroup and First High go up and down completely randomly.
Pair Corralation between Citigroup and First High
If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Citigroup vs. First High School Education
Performance |
| Timeline |
| Citigroup |
| First High School |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and First High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and First High
The main advantage of trading using opposite Citigroup and First High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, First High 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 First High will offset losses from the drop in First High's long position.The idea behind Citigroup and First High School Education pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| First High vs. Gaotu Techedu DRC | First High vs. New Oriental Education | First High vs. Sunlands Technology Group | First High vs. Ihuman Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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