Correlation Between Citigroup and Mahachai Hospital
Can any of the company-specific risk be diversified away by investing in both Citigroup and Mahachai Hospital 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 Mahachai Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Mahachai Hospital Public, you can compare the effects of market volatilities on Citigroup and Mahachai Hospital 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 Mahachai Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mahachai Hospital.
Diversification Opportunities for Citigroup and Mahachai Hospital
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Mahachai is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mahachai Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahachai Hospital Public 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 Mahachai Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahachai Hospital Public has no effect on the direction of Citigroup i.e., Citigroup and Mahachai Hospital go up and down completely randomly.
Pair Corralation between Citigroup and Mahachai Hospital
Taking into account the 90-day investment horizon Citigroup is expected to generate 49.18 times less return on investment than Mahachai Hospital. But when comparing it to its historical volatility, Citigroup is 46.91 times less risky than Mahachai Hospital. It trades about 0.07 of its potential returns per unit of risk. Mahachai Hospital Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,700 in Mahachai Hospital Public on September 1, 2024 and sell it today you would lose (1,825) from holding Mahachai Hospital Public or give up 38.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Citigroup vs. Mahachai Hospital Public
Performance |
| Timeline |
| Citigroup |
| Mahachai Hospital Public |
Citigroup and Mahachai Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mahachai Hospital
The main advantage of trading using opposite Citigroup and Mahachai Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mahachai Hospital 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 Mahachai Hospital will offset losses from the drop in Mahachai Hospital's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Mahachai Hospital vs. AP Public | Mahachai Hospital vs. Advanced Information Technology | Mahachai Hospital vs. AJ Plast Public | Mahachai Hospital vs. Berli Jucker Public |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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