Correlation Between Citigroup and Vietnam Technological
Can any of the company-specific risk be diversified away by investing in both Citigroup and Vietnam Technological 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 Vietnam Technological into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Vietnam Technological And, you can compare the effects of market volatilities on Citigroup and Vietnam Technological 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 Vietnam Technological. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Vietnam Technological.
Diversification Opportunities for Citigroup and Vietnam Technological
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Vietnam is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Vietnam Technological And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vietnam Technological And 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 Vietnam Technological. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vietnam Technological And has no effect on the direction of Citigroup i.e., Citigroup and Vietnam Technological go up and down completely randomly.
Pair Corralation between Citigroup and Vietnam Technological
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.88 times more return on investment than Vietnam Technological. However, Citigroup is 1.88 times more volatile than Vietnam Technological And. It trades about 0.25 of its potential returns per unit of risk. Vietnam Technological And is currently generating about -0.01 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Vietnam Technological And
Performance |
| Timeline |
| Citigroup |
| Vietnam Technological And |
Citigroup and Vietnam Technological Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Vietnam Technological
The main advantage of trading using opposite Citigroup and Vietnam Technological positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Vietnam Technological 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 Vietnam Technological will offset losses from the drop in Vietnam Technological's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Vietnam Technological vs. Vina2 Investment and | Vietnam Technological vs. Tng Investment And | Vietnam Technological vs. Hai An Transport | Vietnam Technological vs. 577 Investment Corp |
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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