Correlation Between Richardson Electronics and Citigroup
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By analyzing existing cross correlation between Richardson Electronics and Citigroup, you can compare the effects of market volatilities on Richardson Electronics and Citigroup 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 Richardson Electronics with a short position of Citigroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richardson Electronics and Citigroup.
Diversification Opportunities for Richardson Electronics and Citigroup
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Richardson and Citigroup is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Richardson Electronics and Citigroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citigroup and Richardson Electronics 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 Richardson Electronics are associated (or correlated) with Citigroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citigroup has no effect on the direction of Richardson Electronics i.e., Richardson Electronics and Citigroup go up and down completely randomly.
Pair Corralation between Richardson Electronics and Citigroup
Assuming the 90 days horizon Richardson Electronics is expected to generate 1.59 times more return on investment than Citigroup. However, Richardson Electronics is 1.59 times more volatile than Citigroup. It trades about 0.09 of its potential returns per unit of risk. Citigroup is currently generating about 0.1 per unit of risk. If you would invest 821.00 in Richardson Electronics on October 25, 2024 and sell it today you would earn a total of 465.00 from holding Richardson Electronics or generate 56.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.52% |
Values | Daily Returns |
Richardson Electronics vs. Citigroup
Performance |
Timeline |
Richardson Electronics |
Citigroup |
Richardson Electronics and Citigroup Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Richardson Electronics and Citigroup
The main advantage of trading using opposite Richardson Electronics and Citigroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richardson Electronics position performs unexpectedly, Citigroup 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 Citigroup will offset losses from the drop in Citigroup's long position.Richardson Electronics vs. AOYAMA TRADING | Richardson Electronics vs. Virtus Investment Partners | Richardson Electronics vs. CVS Health | Richardson Electronics vs. Siemens Healthineers AG |
Citigroup vs. Align Technology | Citigroup vs. X FAB Silicon Foundries | Citigroup vs. Firan Technology Group | Citigroup vs. NorAm Drilling AS |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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