Correlation Between Citigroup and YeaShin International

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

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

Diversification Opportunities for Citigroup and YeaShin International

-0.23

Correlation Coefficient

Citigroup  YeaShin International

Very good diversification

The 3 months correlation between Citigroup and YeaShin is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and YeaShin International Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeaShin International 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 YeaShin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeaShin International has no effect on the direction of Citigroup i.e., Citigroup and YeaShin International go up and down completely randomly.

Pair Corralation between Citigroup and YeaShin International

Taking into account the 90-day investment horizon Citigroup is expected to generate 17.14 times less return on investment than YeaShin International. But when comparing it to its historical volatility, Citigroup is 19.87 times less risky than YeaShin International. It trades about 0.13 of its potential returns per unit of risk. YeaShin International Development is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  3,341  in YeaShin International Development on September 29, 2024 and sell it today you would lose (206.00) from holding YeaShin International Development or give up 6.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Citigroup  vs.  YeaShin International Developm

Citigroup

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

YeaShin International

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in YeaShin International Development are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, YeaShin International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Citigroup and YeaShin International

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

The idea behind Citigroup and YeaShin International Development 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.