Correlation Between Citigroup and THONBURI HEALTHCARE

Can any of the company-specific risk be diversified away by investing in both Citigroup and THONBURI HEALTHCARE 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 THONBURI HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Citigroup and THONBURI HEALTHCARE

-0.76

Correlation Coefficient

Citigroup  THONBURI HEALTHCARE

Pay attention - limited upside

The 3 months correlation between Citigroup and THONBURI is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and THONBURI HEALTHCARE GRO NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THONBURI HEALTHCARE GRO 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 THONBURI HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THONBURI HEALTHCARE GRO has no effect on the direction of Citigroup i.e., Citigroup and THONBURI HEALTHCARE go up and down completely randomly.

Pair Corralation between Citigroup and THONBURI HEALTHCARE

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.42 times more return on investment than THONBURI HEALTHCARE. However, Citigroup is 2.4 times less risky than THONBURI HEALTHCARE. It trades about 0.09 of its potential returns per unit of risk. THONBURI HEALTHCARE GRO NVDR is currently generating about -0.19 per unit of risk. If you would invest  7,101  in Citigroup on December 4, 2024 and sell it today you would earn a total of  616.00  from holding Citigroup or generate 8.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  THONBURI HEALTHCARE GRO NVDR

Citigroup

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in April 2025.

THONBURI HEALTHCARE GRO

Risk-Adjusted Performance

Very Weak

Over the last 90 days THONBURI HEALTHCARE GRO NVDR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Citigroup and THONBURI HEALTHCARE

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

The idea behind Citigroup and THONBURI HEALTHCARE GRO NVDR 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.