Correlation Between Citigroup and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both Citigroup and Haoxi Health 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 Haoxi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Haoxi Health Technology, you can compare the effects of market volatilities on Citigroup and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Haoxi Health.
Diversification Opportunities for Citigroup and Haoxi Health
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Haoxi is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of Citigroup i.e., Citigroup and Haoxi Health go up and down completely randomly.
Pair Corralation between Citigroup and Haoxi Health
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.14 times more return on investment than Haoxi Health. However, Citigroup is 7.01 times less risky than Haoxi Health. It trades about 0.07 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.06 per unit of risk. If you would invest 4,145 in Citigroup on August 27, 2024 and sell it today you would earn a total of 2,839 from holding Citigroup or generate 68.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 42.54% |
| Values | Daily Returns |
Citigroup vs. Haoxi Health Technology
Performance |
| Timeline |
| Citigroup |
| Haoxi Health Technology |
Citigroup and Haoxi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Haoxi Health
The main advantage of trading using opposite Citigroup and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Haoxi Health vs. CuriosityStream | Haoxi Health vs. iQIYI Inc | Haoxi Health vs. Sea | Haoxi Health vs. Scienjoy Holding Corp |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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