Correlation Between Citigroup and Zhongsheng Group
Can any of the company-specific risk be diversified away by investing in both Citigroup and Zhongsheng 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 Zhongsheng Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Zhongsheng Group Holdings, you can compare the effects of market volatilities on Citigroup and Zhongsheng 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 Zhongsheng Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Zhongsheng Group.
Diversification Opportunities for Citigroup and Zhongsheng Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Zhongsheng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Zhongsheng Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongsheng Group Holdings 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 Zhongsheng Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongsheng Group Holdings has no effect on the direction of Citigroup i.e., Citigroup and Zhongsheng Group go up and down completely randomly.
Pair Corralation between Citigroup and Zhongsheng Group
Taking into account the 90-day investment horizon Citigroup is expected to generate 3.0 times less return on investment than Zhongsheng Group. But when comparing it to its historical volatility, Citigroup is 2.03 times less risky than Zhongsheng Group. It trades about 0.06 of its potential returns per unit of risk. Zhongsheng Group Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 169.00 in Zhongsheng Group Holdings on September 3, 2024 and sell it today you would earn a total of 87.00 from holding Zhongsheng Group Holdings or generate 51.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Citigroup vs. Zhongsheng Group Holdings
Performance |
| Timeline |
| Citigroup |
| Zhongsheng Group Holdings |
Citigroup and Zhongsheng Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Zhongsheng Group
The main advantage of trading using opposite Citigroup and Zhongsheng Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Zhongsheng 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 Zhongsheng Group will offset losses from the drop in Zhongsheng Group's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Zhongsheng Group vs. SunCar Technology Group | Zhongsheng Group vs. Jiuzi Holdings | Zhongsheng Group vs. Vroom Inc | Zhongsheng Group vs. Carvana Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |