Correlation Between Citigroup and PICC Property
Can any of the company-specific risk be diversified away by investing in both Citigroup and PICC Property 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 PICC Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and PICC Property and, you can compare the effects of market volatilities on Citigroup and PICC Property 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 PICC Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and PICC Property.
Diversification Opportunities for Citigroup and PICC Property
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citigroup and PICC is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and PICC Property and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICC Property 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 PICC Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICC Property has no effect on the direction of Citigroup i.e., Citigroup and PICC Property go up and down completely randomly.
Pair Corralation between Citigroup and PICC Property
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.21 times more return on investment than PICC Property. However, Citigroup is 1.21 times more volatile than PICC Property and. It trades about 0.33 of its potential returns per unit of risk. PICC Property and is currently generating about 0.05 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. PICC Property and
Performance |
| Timeline |
| Citigroup |
| PICC Property |
Citigroup and PICC Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and PICC Property
The main advantage of trading using opposite Citigroup and PICC Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, PICC Property 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 PICC Property will offset losses from the drop in PICC Property's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| PICC Property vs. Flutter Entertainment PLC | PICC Property vs. COMMERCIAL VEHICLE | PICC Property vs. CNVISION MEDIA | PICC Property vs. Cars Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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