Correlation Between Citigroup and BingEx
Can any of the company-specific risk be diversified away by investing in both Citigroup and BingEx 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 BingEx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and BingEx, you can compare the effects of market volatilities on Citigroup and BingEx 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 BingEx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and BingEx.
Diversification Opportunities for Citigroup and BingEx
Average diversification
The 3 months correlation between Citigroup and BingEx is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and BingEx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BingEx 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 BingEx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BingEx has no effect on the direction of Citigroup i.e., Citigroup and BingEx go up and down completely randomly.
Pair Corralation between Citigroup and BingEx
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.28 times more return on investment than BingEx. However, Citigroup is 3.58 times less risky than BingEx. It trades about 0.11 of its potential returns per unit of risk. BingEx is currently generating about -0.29 per unit of risk. If you would invest 4,714 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,425 from holding Citigroup or generate 51.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 17.0% |
| Values | Daily Returns |
Citigroup vs. BingEx
Performance |
| Timeline |
| Citigroup |
| BingEx |
Citigroup and BingEx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and BingEx
The main advantage of trading using opposite Citigroup and BingEx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, BingEx 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 BingEx will offset losses from the drop in BingEx's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| BingEx vs. Expeditors International of | BingEx vs. FedEx | BingEx vs. Globavend Holdings Limited | BingEx vs. GXO Logistics |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |