Correlation Between Citigroup and Xiabuxiabu Catering
Can any of the company-specific risk be diversified away by investing in both Citigroup and Xiabuxiabu Catering 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 Xiabuxiabu Catering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Xiabuxiabu Catering Management, you can compare the effects of market volatilities on Citigroup and Xiabuxiabu Catering 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 Xiabuxiabu Catering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Xiabuxiabu Catering.
Diversification Opportunities for Citigroup and Xiabuxiabu Catering
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Xiabuxiabu is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Xiabuxiabu Catering Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiabuxiabu Catering 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 Xiabuxiabu Catering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiabuxiabu Catering has no effect on the direction of Citigroup i.e., Citigroup and Xiabuxiabu Catering go up and down completely randomly.
Pair Corralation between Citigroup and Xiabuxiabu Catering
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.28 times more return on investment than Xiabuxiabu Catering. However, Citigroup is 2.28 times more volatile than Xiabuxiabu Catering Management. It trades about 0.19 of its potential returns per unit of risk. Xiabuxiabu Catering Management is currently generating about -0.13 per unit of risk. If you would invest 5,788 in Citigroup on September 14, 2024 and sell it today you would earn a total of 1,408 from holding Citigroup or generate 24.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Citigroup vs. Xiabuxiabu Catering Management
Performance |
Timeline |
Citigroup |
Xiabuxiabu Catering |
Citigroup and Xiabuxiabu Catering Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citigroup and Xiabuxiabu Catering
The main advantage of trading using opposite Citigroup and Xiabuxiabu Catering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Xiabuxiabu Catering 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 Xiabuxiabu Catering will offset losses from the drop in Xiabuxiabu Catering's long position.The idea behind Citigroup and Xiabuxiabu Catering Management 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.Xiabuxiabu Catering vs. Canlan Ice Sports | Xiabuxiabu Catering vs. Chemours Co | Xiabuxiabu Catering vs. Mativ Holdings | Xiabuxiabu Catering vs. Air Products and |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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