Correlation Between HE Equipment and CITIGROUP
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By analyzing existing cross correlation between HE Equipment Services and CITIGROUP FDG INC, you can compare the effects of market volatilities on HE Equipment 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 HE Equipment with a short position of CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and CITIGROUP.
Diversification Opportunities for HE Equipment and CITIGROUP
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HEES and CITIGROUP is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and CITIGROUP FDG INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP FDG INC and HE Equipment 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 HE Equipment Services 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 FDG INC has no effect on the direction of HE Equipment i.e., HE Equipment and CITIGROUP go up and down completely randomly.
Pair Corralation between HE Equipment and CITIGROUP
Given the investment horizon of 90 days HE Equipment Services is expected to generate 0.5 times more return on investment than CITIGROUP. However, HE Equipment Services is 2.02 times less risky than CITIGROUP. It trades about 0.04 of its potential returns per unit of risk. CITIGROUP FDG INC is currently generating about 0.02 per unit of risk. If you would invest 4,222 in HE Equipment Services on September 12, 2024 and sell it today you would earn a total of 1,502 from holding HE Equipment Services or generate 35.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 23.43% |
| Values | Daily Returns |
HE Equipment Services vs. CITIGROUP FDG INC
Performance |
| Timeline |
| HE Equipment Services |
| CITIGROUP FDG INC |
HE Equipment and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and CITIGROUP
The main advantage of trading using opposite HE Equipment and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment 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.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
| CITIGROUP vs. ServiceNow | CITIGROUP vs. SmartStop Self Storage | CITIGROUP vs. Joint Stock | CITIGROUP vs. Asure Software |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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