Correlation Between Citigroup and QuantaSing Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and QuantaSing Group 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 QuantaSing Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and QuantaSing Group Limited, you can compare the effects of market volatilities on Citigroup and QuantaSing Group 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 QuantaSing Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and QuantaSing Group.
Diversification Opportunities for Citigroup and QuantaSing Group
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and QuantaSing is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and QuantaSing Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuantaSing Group 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 QuantaSing Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuantaSing Group has no effect on the direction of Citigroup i.e., Citigroup and QuantaSing Group go up and down completely randomly.
Pair Corralation between Citigroup and QuantaSing Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.35 times more return on investment than QuantaSing Group. However, Citigroup is 2.83 times less risky than QuantaSing Group. It trades about 0.45 of its potential returns per unit of risk. QuantaSing Group Limited is currently generating about 0.11 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. QuantaSing Group Limited
Performance |
| Timeline |
| Citigroup |
| QuantaSing Group |
Citigroup and QuantaSing Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and QuantaSing Group
The main advantage of trading using opposite Citigroup and QuantaSing Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, QuantaSing Group 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 QuantaSing Group will offset losses from the drop in QuantaSing Group's long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| QuantaSing Group vs. Golden Sun Education | QuantaSing Group vs. Genius Group | QuantaSing Group vs. Wah Fu Education | QuantaSing Group vs. Lixiang Education Holding |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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