Correlation Between Citigroup and Up Fintech

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

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

Diversification Opportunities for Citigroup and Up Fintech

-0.09

Correlation Coefficient

Citigroup  Up Fintech

Good diversification

The 3 months correlation between Citigroup and TIGR is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding 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 Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Citigroup i.e., Citigroup and Up Fintech go up and down completely randomly.

Pair Corralation between Citigroup and Up Fintech

Taking into account the 90-day investment horizon Citigroup is expected to generate 10.23 times less return on investment than Up Fintech. But when comparing it to its historical volatility, Citigroup is 2.89 times less risky than Up Fintech. It trades about 0.03 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  651.00  in Up Fintech Holding on December 28, 2024 and sell it today you would earn a total of  232.00  from holding Up Fintech Holding or generate 35.64% return on investment over 90 days.

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

Citigroup  vs.  Up Fintech Holding

Citigroup

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Up Fintech Holding

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Up Fintech Holding are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Up Fintech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and Up Fintech

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

The idea behind Citigroup and Up Fintech Holding 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.