Correlation Between Citigroup and MFC Nichada
Can any of the company-specific risk be diversified away by investing in both Citigroup and MFC Nichada 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 MFC Nichada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and MFC Nichada Thani Property, you can compare the effects of market volatilities on Citigroup and MFC Nichada 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 MFC Nichada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and MFC Nichada.
Diversification Opportunities for Citigroup and MFC Nichada
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and MFC is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and MFC Nichada Thani Property in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Nichada Thani 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 MFC Nichada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Nichada Thani has no effect on the direction of Citigroup i.e., Citigroup and MFC Nichada go up and down completely randomly.
Pair Corralation between Citigroup and MFC Nichada
Taking into account the 90-day investment horizon Citigroup is expected to generate 16.84 times less return on investment than MFC Nichada. But when comparing it to its historical volatility, Citigroup is 27.98 times less risky than MFC Nichada. It trades about 0.07 of its potential returns per unit of risk. MFC Nichada Thani Property is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 158.00 in MFC Nichada Thani Property on September 2, 2024 and sell it today you would earn a total of 82.00 from holding MFC Nichada Thani Property or generate 51.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.38% |
| Values | Daily Returns |
Citigroup vs. MFC Nichada Thani Property
Performance |
| Timeline |
| Citigroup |
| MFC Nichada Thani |
Citigroup and MFC Nichada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and MFC Nichada
The main advantage of trading using opposite Citigroup and MFC Nichada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, MFC Nichada 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 MFC Nichada will offset losses from the drop in MFC Nichada's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| MFC Nichada vs. Land and Houses | MFC Nichada vs. Major Cineplex Lifestyle | MFC Nichada vs. LH Shopping Centers | MFC Nichada vs. MFC Strategic Storage |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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