Correlation Between Citigroup and Renrenle Commercial
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Renrenle Commercial Group, you can compare the effects of market volatilities on Citigroup and Renrenle Commercial 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 Renrenle Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Renrenle Commercial.
Diversification Opportunities for Citigroup and Renrenle Commercial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Renrenle is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Renrenle Commercial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renrenle Commercial 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 Renrenle Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renrenle Commercial has no effect on the direction of Citigroup i.e., Citigroup and Renrenle Commercial go up and down completely randomly.
Pair Corralation between Citigroup and Renrenle Commercial
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.47 times more return on investment than Renrenle Commercial. However, Citigroup is 2.11 times less risky than Renrenle Commercial. It trades about 0.4 of its potential returns per unit of risk. Renrenle Commercial Group is currently generating about 0.01 per unit of risk. If you would invest 6,977 in Citigroup on October 22, 2024 and sell it today you would earn a total of 1,022 from holding Citigroup or generate 14.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.0% |
Values | Daily Returns |
Citigroup vs. Renrenle Commercial Group
Performance |
Timeline |
Citigroup |
Renrenle Commercial |
Citigroup and Renrenle Commercial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Renrenle Commercial
The main advantage of trading using opposite Citigroup and Renrenle Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Renrenle Commercial 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 Renrenle Commercial will offset losses from the drop in Renrenle Commercial's long position.Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
Renrenle Commercial vs. Wuxi Chemical Equipment | Renrenle Commercial vs. Dezhan HealthCare Co | Renrenle Commercial vs. Jilin Chemical Fibre | Renrenle Commercial vs. Youngy Health 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |