Correlation Between Citigroup and Hoang Huy

Can any of the company-specific risk be diversified away by investing in both Citigroup and Hoang Huy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Hoang Huy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Citigroup and Hoang Huy Investment, you can compare the effects of market volatilities on Citigroup and Hoang Huy 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 Hoang Huy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hoang Huy.

Diversification Opportunities for Citigroup and Hoang Huy

-0.29

Correlation Coefficient

Citigroup  Hoang Huy

Very good diversification

The 3 months correlation between Citigroup and Hoang is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Hoang Huy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hoang Huy Investment 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 Hoang Huy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hoang Huy Investment has no effect on the direction of Citigroup i.e., Citigroup and Hoang Huy go up and down completely randomly.

Pair Corralation between Citigroup and Hoang Huy

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.81 times more return on investment than Hoang Huy. However, Citigroup is 1.24 times less risky than Hoang Huy. It trades about 0.06 of its potential returns per unit of risk. Hoang Huy Investment is currently generating about -0.08 per unit of risk. If you would invest  6,227  in Citigroup on September 27, 2024 and sell it today you would earn a total of  873.00  from holding Citigroup or generate 14.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.43%
Values	Daily Returns

Citigroup  vs.  Hoang Huy Investment

Citigroup

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hoang Huy Investment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hoang Huy Investment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Citigroup and Hoang Huy

The main advantage of trading using opposite Citigroup and Hoang Huy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hoang Huy 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 Hoang Huy will offset losses from the drop in Hoang Huy's long position.

The idea behind Citigroup and Hoang Huy Investment 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..