Correlation Between Citigroup and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both Citigroup and Srithai Superware 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 Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Srithai Superware Public, you can compare the effects of market volatilities on Citigroup and Srithai Superware 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 Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Srithai Superware.
Diversification Opportunities for Citigroup and Srithai Superware
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Srithai is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware Public 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 Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of Citigroup i.e., Citigroup and Srithai Superware go up and down completely randomly.
Pair Corralation between Citigroup and Srithai Superware
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.17 times more return on investment than Srithai Superware. However, Citigroup is 1.17 times more volatile than Srithai Superware Public. It trades about 0.29 of its potential returns per unit of risk. Srithai Superware Public is currently generating about 0.08 per unit of risk. If you would invest 6,122 in Citigroup on August 26, 2024 and sell it today you would earn a total of 862.00 from holding Citigroup or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Srithai Superware Public
Performance |
| Timeline |
| Citigroup |
| Srithai Superware Public |
Citigroup and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Srithai Superware
The main advantage of trading using opposite Citigroup and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Srithai Superware 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 Srithai Superware will offset losses from the drop in Srithai Superware's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Srithai Superware vs. PTT Public | Srithai Superware vs. PTT Exploration and | Srithai Superware vs. CP ALL Public | Srithai Superware vs. Kasikornbank Public |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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