Correlation Between Citigroup and Ningbo Fangzheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citigroup and Ningbo Fangzheng Automobile, you can compare the effects of market volatilities on Citigroup and Ningbo Fangzheng 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 Ningbo Fangzheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Ningbo Fangzheng.
Diversification Opportunities for Citigroup and Ningbo Fangzheng
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Ningbo is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Ningbo Fangzheng Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Fangzheng Aut 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 Ningbo Fangzheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Fangzheng Aut has no effect on the direction of Citigroup i.e., Citigroup and Ningbo Fangzheng go up and down completely randomly.
Pair Corralation between Citigroup and Ningbo Fangzheng
Taking into account the 90-day investment horizon Citigroup is expected to generate 10.03 times less return on investment than Ningbo Fangzheng. But when comparing it to its historical volatility, Citigroup is 1.16 times less risky than Ningbo Fangzheng. It trades about 0.01 of its potential returns per unit of risk. Ningbo Fangzheng Automobile is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,519 in Ningbo Fangzheng Automobile on December 30, 2024 and sell it today you would earn a total of 261.00 from holding Ningbo Fangzheng Automobile or generate 17.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.16% |
Values | Daily Returns |
Citigroup vs. Ningbo Fangzheng Automobile
Performance |
Timeline |
Citigroup |
Ningbo Fangzheng Aut |
Citigroup and Ningbo Fangzheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Ningbo Fangzheng
The main advantage of trading using opposite Citigroup and Ningbo Fangzheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Ningbo Fangzheng 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 Ningbo Fangzheng will offset losses from the drop in Ningbo Fangzheng's long position.Citigroup vs. PJT Partners | Citigroup vs. National Bank Holdings | Citigroup vs. FB Financial Corp | Citigroup vs. Northrim BanCorp |
Ningbo Fangzheng vs. Songz Automobile Air | Ningbo Fangzheng vs. Chongqing Changan Automobile | Ningbo Fangzheng vs. Dongfeng Automobile Co | Ningbo Fangzheng vs. JiShi Media 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |