Correlation Between Citigroup and Thai Union
Can any of the company-specific risk be diversified away by investing in both Citigroup and Thai Union 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 Thai Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Thai Union Group, you can compare the effects of market volatilities on Citigroup and Thai Union 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 Thai Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Thai Union.
Diversification Opportunities for Citigroup and Thai Union
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Thai is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union 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 Thai Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Citigroup i.e., Citigroup and Thai Union go up and down completely randomly.
Pair Corralation between Citigroup and Thai Union
Taking into account the 90-day investment horizon Citigroup is expected to generate 102.09 times less return on investment than Thai Union. But when comparing it to its historical volatility, Citigroup is 65.82 times less risky than Thai Union. It trades about 0.07 of its potential returns per unit of risk. Thai Union Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,301 in Thai Union Group on September 1, 2024 and sell it today you would earn a total of 69.00 from holding Thai Union Group or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Citigroup vs. Thai Union Group
Performance |
| Timeline |
| Citigroup |
| Thai Union Group |
Citigroup and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Thai Union
The main advantage of trading using opposite Citigroup and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Thai Union 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 Thai Union will offset losses from the drop in Thai Union's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Thai Union vs. Krung Thai Bank | Thai Union vs. Thai Oil Public | Thai Union vs. Charoen Pokphand Foods | Thai Union vs. CP ALL 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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