Correlation Between Citigroup and Tianjin Ruixin
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By analyzing existing cross correlation between Citigroup and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Citigroup and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Tianjin Ruixin.
Diversification Opportunities for Citigroup and Tianjin Ruixin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Tianjin is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Citigroup i.e., Citigroup and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Citigroup and Tianjin Ruixin
Taking into account the 90-day investment horizon Citigroup is expected to generate 4.81 times less return on investment than Tianjin Ruixin. But when comparing it to its historical volatility, Citigroup is 2.55 times less risky than Tianjin Ruixin. It trades about 0.1 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,087 in Tianjin Ruixin Technology on September 21, 2024 and sell it today you would earn a total of 660.00 from holding Tianjin Ruixin Technology or generate 60.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 93.75% |
Values | Daily Returns |
Citigroup vs. Tianjin Ruixin Technology
Performance |
Timeline |
Citigroup |
Tianjin Ruixin Technology |
Citigroup and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Tianjin Ruixin
The main advantage of trading using opposite Citigroup and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin's long position.Citigroup vs. JPMorgan Chase Co | ||
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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 Stocks Directory module to find actively traded stocks across global markets.
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