Correlation Between Citigroup and TENCNT
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By analyzing existing cross correlation between Citigroup and TENCNT 3975 11 APR 29, you can compare the effects of market volatilities on Citigroup and TENCNT 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 TENCNT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TENCNT.
Diversification Opportunities for Citigroup and TENCNT
Poor diversification
The 3 months correlation between Citigroup and TENCNT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TENCNT 3975 11 APR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TENCNT 75 11 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 TENCNT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TENCNT 75 11 has no effect on the direction of Citigroup i.e., Citigroup and TENCNT go up and down completely randomly.
Pair Corralation between Citigroup and TENCNT
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.23 times more return on investment than TENCNT. However, Citigroup is 1.23 times more volatile than TENCNT 3975 11 APR 29. It trades about 0.07 of its potential returns per unit of risk. TENCNT 3975 11 APR 29 is currently generating about 0.0 per unit of risk. If you would invest 4,381 in Citigroup on August 31, 2024 and sell it today you would earn a total of 2,706 from holding Citigroup or generate 61.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.29% |
| Values | Daily Returns |
Citigroup vs. TENCNT 3975 11 APR 29
Performance |
| Timeline |
| Citigroup |
| TENCNT 75 11 |
Citigroup and TENCNT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and TENCNT
The main advantage of trading using opposite Citigroup and TENCNT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, TENCNT 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 TENCNT will offset losses from the drop in TENCNT'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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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