Correlation Between Citigroup and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Thaifoods 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 Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Thaifoods Group Public, you can compare the effects of market volatilities on Citigroup and Thaifoods 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Thaifoods Group.
Diversification Opportunities for Citigroup and Thaifoods Group
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citigroup and Thaifoods is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of Citigroup i.e., Citigroup and Thaifoods Group go up and down completely randomly.
Pair Corralation between Citigroup and Thaifoods Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.0 times more return on investment than Thaifoods Group. However, Citigroup is 1.0 times more volatile than Thaifoods Group Public. It trades about 0.32 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.22 per unit of risk. If you would invest 6,235 in Citigroup on September 3, 2024 and sell it today you would earn a total of 852.00 from holding Citigroup or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Thaifoods Group Public
Performance |
| Timeline |
| Citigroup |
| Thaifoods Group Public |
Citigroup and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Thaifoods Group
The main advantage of trading using opposite Citigroup and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Thaifoods 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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