Correlation Between Citigroup and Nano Labs
Can any of the company-specific risk be diversified away by investing in both Citigroup and Nano Labs 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 Nano Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Nano Labs, you can compare the effects of market volatilities on Citigroup and Nano Labs 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 Nano Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nano Labs.
Diversification Opportunities for Citigroup and Nano Labs
Modest diversification
The 3 months correlation between Citigroup and Nano is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nano Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Labs 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 Nano Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Labs has no effect on the direction of Citigroup i.e., Citigroup and Nano Labs go up and down completely randomly.
Pair Corralation between Citigroup and Nano Labs
Taking into account the 90-day investment horizon Citigroup is expected to generate 13.18 times less return on investment than Nano Labs. But when comparing it to its historical volatility, Citigroup is 17.64 times less risky than Nano Labs. It trades about 0.21 of its potential returns per unit of risk. Nano Labs is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 606.00 in Nano Labs on August 30, 2024 and sell it today you would earn a total of 250.00 from holding Nano Labs or generate 41.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Nano Labs
Performance |
| Timeline |
| Citigroup |
| Nano Labs |
Citigroup and Nano Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nano Labs
The main advantage of trading using opposite Citigroup and Nano Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nano Labs 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 Nano Labs will offset losses from the drop in Nano Labs' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nano Labs vs. SEALSQ Corp | Nano Labs vs. GSI Technology | Nano Labs vs. SemiLEDS | Nano Labs vs. ChipMOS Technologies |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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