Correlation Between HUT 8 and Citigroup
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By analyzing existing cross correlation between HUT 8 P and Citigroup, you can compare the effects of market volatilities on HUT 8 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 HUT 8 with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUT 8 and Citigroup.
Diversification Opportunities for HUT 8 and Citigroup
Almost no diversification
The 3 months correlation between HUT and Citigroup is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HUT 8 P and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and HUT 8 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 HUT 8 P 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 HUT 8 i.e., HUT 8 and Citigroup go up and down completely randomly.
Pair Corralation between HUT 8 and Citigroup
Assuming the 90 days horizon HUT 8 P is expected to generate 2.82 times more return on investment than Citigroup. However, HUT 8 is 2.82 times more volatile than Citigroup. It trades about 0.29 of its potential returns per unit of risk. Citigroup is currently generating about 0.24 per unit of risk. If you would invest 1,580 in HUT 8 P on August 29, 2024 and sell it today you would earn a total of 800.00 from holding HUT 8 P or generate 50.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUT 8 P vs. Citigroup
Performance |
| Timeline |
| HUT 8 P |
| Citigroup |
HUT 8 and Citigroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUT 8 and Citigroup
The main advantage of trading using opposite HUT 8 and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUT 8 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.The idea behind HUT 8 P and Citigroup pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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