Correlation Between Citigroup and Srivichaivejvivat

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

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

Diversification Opportunities for Citigroup and Srivichaivejvivat

0.02

Correlation Coefficient

Citigroup  Srivichaivejvivat

Significant diversification

The 3 months correlation between Citigroup and Srivichaivejvivat is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Srivichaivejvivat Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srivichaivejvivat Public 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 Srivichaivejvivat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srivichaivejvivat Public has no effect on the direction of Citigroup i.e., Citigroup and Srivichaivejvivat go up and down completely randomly.

Pair Corralation between Citigroup and Srivichaivejvivat

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.99 times more return on investment than Srivichaivejvivat. However, Citigroup is 1.01 times less risky than Srivichaivejvivat. It trades about 0.08 of its potential returns per unit of risk. Srivichaivejvivat Public is currently generating about 0.02 per unit of risk. If you would invest  4,091  in Citigroup on September 14, 2024 and sell it today you would earn a total of  3,029  from holding Citigroup or generate 74.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.97%
Values	Daily Returns

Citigroup  vs.  Srivichaivejvivat Public

Citigroup

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Citigroup exhibited solid returns over the last few months and may actually be approaching a breakup point.

Srivichaivejvivat Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Srivichaivejvivat Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical indicators, Srivichaivejvivat is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Citigroup and Srivichaivejvivat

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

The idea behind Citigroup and Srivichaivejvivat Public 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.