Correlation Between Citigroup and Hyundai
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By analyzing existing cross correlation between Citigroup and Hyundai Capital America, you can compare the effects of market volatilities on Citigroup and Hyundai 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 Hyundai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hyundai.
Diversification Opportunities for Citigroup and Hyundai
Weak diversification
The 3 months correlation between Citigroup and Hyundai is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hyundai Capital America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyundai Capital America 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 Hyundai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyundai Capital America has no effect on the direction of Citigroup i.e., Citigroup and Hyundai go up and down completely randomly.
Pair Corralation between Citigroup and Hyundai
Taking into account the 90-day investment horizon Citigroup is expected to generate 14.8 times more return on investment than Hyundai. However, Citigroup is 14.8 times more volatile than Hyundai Capital America. It trades about 0.26 of its potential returns per unit of risk. Hyundai Capital America is currently generating about -0.09 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 57.14% |
| Values | Daily Returns |
Citigroup vs. Hyundai Capital America
Performance |
| Timeline |
| Citigroup |
| Hyundai Capital America |
Citigroup and Hyundai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hyundai
The main advantage of trading using opposite Citigroup and Hyundai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hyundai 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 Hyundai will offset losses from the drop in Hyundai'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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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