Correlation Between Citigroup and Thai Fund

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

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

Diversification Opportunities for Citigroup and Thai Fund

0.0

Correlation Coefficient

Citigroup  Thai Fund

Pay attention - limited upside

The 3 months correlation between Citigroup and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Thai Fund Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Fund Common 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 Thai Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Fund Common has no effect on the direction of Citigroup i.e., Citigroup and Thai Fund go up and down completely randomly.

Pair Corralation between Citigroup and Thai Fund

If you would invest  7,063  in Citigroup on December 17, 2024 and sell it today you would lose (69.00) from holding Citigroup or give up 0.98% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Citigroup  vs.  Thai Fund Common

Citigroup

Risk-Adjusted Performance

Very Weak

Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Citigroup is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Thai Fund Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Thai Fund Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Thai Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Citigroup and Thai Fund

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

The idea behind Citigroup and Thai Fund Common 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 Anywhere module to track or share privately all of your investments from the convenience of any device.