Correlation Between Citigroup and Japan Vietnam
Can any of the company-specific risk be diversified away by investing in both Citigroup and Japan Vietnam 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 Japan Vietnam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Japan Vietnam Medical, you can compare the effects of market volatilities on Citigroup and Japan Vietnam 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 Japan Vietnam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Japan Vietnam.
Diversification Opportunities for Citigroup and Japan Vietnam
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Japan is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Japan Vietnam Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Vietnam Medical 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 Japan Vietnam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Vietnam Medical has no effect on the direction of Citigroup i.e., Citigroup and Japan Vietnam go up and down completely randomly.
Pair Corralation between Citigroup and Japan Vietnam
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.72 times more return on investment than Japan Vietnam. However, Citigroup is 1.72 times more volatile than Japan Vietnam Medical. It trades about 0.07 of its potential returns per unit of risk. Japan Vietnam Medical is currently generating about -0.14 per unit of risk. If you would invest 6,313 in Citigroup on August 27, 2024 and sell it today you would earn a total of 671.00 from holding Citigroup or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.82% |
| Values | Daily Returns |
Citigroup vs. Japan Vietnam Medical
Performance |
| Timeline |
| Citigroup |
| Japan Vietnam Medical |
Citigroup and Japan Vietnam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Japan Vietnam
The main advantage of trading using opposite Citigroup and Japan Vietnam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Japan Vietnam 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 Japan Vietnam will offset losses from the drop in Japan Vietnam's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Japan Vietnam vs. FIT INVEST JSC | Japan Vietnam vs. Damsan JSC | Japan Vietnam vs. An Phat Plastic | Japan Vietnam vs. APG Securities Joint |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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