Correlation Between Citigroup and Saigon Thuong
Can any of the company-specific risk be diversified away by investing in both Citigroup and Saigon Thuong 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 Saigon Thuong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Saigon Thuong Tin, you can compare the effects of market volatilities on Citigroup and Saigon Thuong 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 Saigon Thuong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Saigon Thuong.
Diversification Opportunities for Citigroup and Saigon Thuong
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Saigon is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Saigon Thuong Tin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saigon Thuong Tin 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 Saigon Thuong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saigon Thuong Tin has no effect on the direction of Citigroup i.e., Citigroup and Saigon Thuong go up and down completely randomly.
Pair Corralation between Citigroup and Saigon Thuong
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.04 times more return on investment than Saigon Thuong. However, Citigroup is 1.04 times more volatile than Saigon Thuong Tin. It trades about 0.11 of its potential returns per unit of risk. Saigon Thuong Tin is currently generating about -0.07 per unit of risk. If you would invest 4,714 in Citigroup on September 3, 2024 and sell it today you would earn a total of 2,425 from holding Citigroup or generate 51.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Citigroup vs. Saigon Thuong Tin
Performance |
| Timeline |
| Citigroup |
| Saigon Thuong Tin |
Citigroup and Saigon Thuong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Saigon Thuong
The main advantage of trading using opposite Citigroup and Saigon Thuong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Saigon Thuong 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 Saigon Thuong will offset losses from the drop in Saigon Thuong's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Saigon Thuong vs. Pha Le Plastics | Saigon Thuong vs. Thong Nhat Rubber | Saigon Thuong vs. Petrolimex Insurance Corp | Saigon Thuong vs. Tien Phong Plastic |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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