Correlation Between Citigroup and Polyplex (Thailand)
Can any of the company-specific risk be diversified away by investing in both Citigroup and Polyplex (Thailand) 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 Polyplex (Thailand) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Polyplex Public, you can compare the effects of market volatilities on Citigroup and Polyplex (Thailand) 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 Polyplex (Thailand). Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Polyplex (Thailand).
Diversification Opportunities for Citigroup and Polyplex (Thailand)
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Polyplex is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex (Thailand) 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 Polyplex (Thailand). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex (Thailand) has no effect on the direction of Citigroup i.e., Citigroup and Polyplex (Thailand) go up and down completely randomly.
Pair Corralation between Citigroup and Polyplex (Thailand)
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.38 times less return on investment than Polyplex (Thailand). But when comparing it to its historical volatility, Citigroup is 4.46 times less risky than Polyplex (Thailand). It trades about 0.07 of its potential returns per unit of risk. Polyplex Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Polyplex Public on September 23, 2024 and sell it today you would earn a total of 10.00 from holding Polyplex Public or generate 47.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.03% |
Values | Daily Returns |
Citigroup vs. Polyplex Public
Performance |
Timeline |
Citigroup |
Polyplex (Thailand) |
Citigroup and Polyplex (Thailand) Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Polyplex (Thailand)
The main advantage of trading using opposite Citigroup and Polyplex (Thailand) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Polyplex (Thailand) 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 Polyplex (Thailand) will offset losses from the drop in Polyplex (Thailand)'s long position.Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
Polyplex (Thailand) vs. Bridgestone | Polyplex (Thailand) vs. Advanced Drainage Systems | Polyplex (Thailand) vs. The Goodyear Tire | Polyplex (Thailand) vs. Sumitomo Rubber Industries |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Transaction History View history of all your transactions and understand their impact on performance | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |