Correlation Between AGRICUL BK and Citigroup
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By analyzing existing cross correlation between AGRICUL BK CHINA H and Citigroup, you can compare the effects of market volatilities on AGRICUL BK and Citigroup 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 AGRICUL BK with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICUL BK and Citigroup.
Diversification Opportunities for AGRICUL BK and Citigroup
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AGRICUL and Citigroup is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AGRICUL BK CHINA H and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and AGRICUL BK 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 AGRICUL BK CHINA H are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of AGRICUL BK i.e., AGRICUL BK and Citigroup go up and down completely randomly.
Pair Corralation between AGRICUL BK and Citigroup
Assuming the 90 days trading horizon AGRICUL BK is expected to generate 2.83 times less return on investment than Citigroup. But when comparing it to its historical volatility, AGRICUL BK CHINA H is 1.28 times less risky than Citigroup. It trades about 0.11 of its potential returns per unit of risk. Citigroup is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,892 in Citigroup on September 1, 2024 and sell it today you would earn a total of 825.00 from holding Citigroup or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICUL BK CHINA H vs. Citigroup
Performance |
| Timeline |
| AGRICUL BK CHINA |
| Citigroup |
AGRICUL BK and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICUL BK and Citigroup
The main advantage of trading using opposite AGRICUL BK and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICUL BK position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.| AGRICUL BK vs. BE Semiconductor Industries | AGRICUL BK vs. NXP Semiconductors NV | AGRICUL BK vs. Luckin Coffee | AGRICUL BK vs. ELMOS SEMICONDUCTOR |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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