Correlation Between Citigroup and ALIBABA
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and ALIBABA GROUP HLDG, you can compare the effects of market volatilities on Citigroup and ALIBABA 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 ALIBABA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and ALIBABA.
Diversification Opportunities for Citigroup and ALIBABA
Very weak diversification
The 3 months correlation between Citigroup and ALIBABA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and ALIBABA GROUP HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIBABA GROUP HLDG 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 ALIBABA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIBABA GROUP HLDG has no effect on the direction of Citigroup i.e., Citigroup and ALIBABA go up and down completely randomly.
Pair Corralation between Citigroup and ALIBABA
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.27 times more return on investment than ALIBABA. However, Citigroup is 4.27 times more volatile than ALIBABA GROUP HLDG. It trades about 0.08 of its potential returns per unit of risk. ALIBABA GROUP HLDG is currently generating about 0.02 per unit of risk. If you would invest 4,685 in Citigroup on November 19, 2024 and sell it today you would earn a total of 3,776 from holding Citigroup or generate 80.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 79.19% |
| Values | Daily Returns |
Citigroup vs. ALIBABA GROUP HLDG
Performance |
| Timeline |
| Citigroup |
| ALIBABA GROUP HLDG |
Citigroup and ALIBABA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and ALIBABA
The main advantage of trading using opposite Citigroup and ALIBABA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, ALIBABA 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 ALIBABA will offset losses from the drop in ALIBABA's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |