Correlation Between Citigroup and TuanChe

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Citigroup and TuanChe 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 TuanChe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and TuanChe Limited, you can compare the effects of market volatilities on Citigroup and TuanChe 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 TuanChe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and TuanChe.

Diversification Opportunities for Citigroup and TuanChe

0.15
  Correlation Coefficient

Average diversification

The 3 months correlation between Citigroup and TuanChe is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and TuanChe Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TuanChe Limited 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 TuanChe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TuanChe Limited has no effect on the direction of Citigroup i.e., Citigroup and TuanChe go up and down completely randomly.

Pair Corralation between Citigroup and TuanChe

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.27 times more return on investment than TuanChe. However, Citigroup is 3.7 times less risky than TuanChe. It trades about 0.01 of its potential returns per unit of risk. TuanChe Limited is currently generating about 0.0 per unit of risk. If you would invest  4,689  in Citigroup on March 29, 2022 and sell it today you would earn a total of  84.00  from holding Citigroup or generate 1.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Citigroup  vs.  TuanChe Limited

 Performance (%) 
      Timeline 
Citigroup 
Citigroup Performance
0 of 100
Over the last 90 days Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in July 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0439
Payout Ratio
0.24
Last Split Factor
1:10
Forward Annual Dividend Rate
2.04
Dividend Date
2022-05-27
Ex Dividend Date
2022-04-29
Last Split Date
2011-05-09

Citigroup Price Channel

TuanChe Limited 
TuanChe Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in TuanChe Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, TuanChe sustained solid returns over the last few months and may actually be approaching a breakup point.

Structure and Payout Changes

Last Split Factor
1:4
Dividend Date
2020-10-22
Last Split Date
2020-10-22

TuanChe Price Channel

Citigroup and TuanChe Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Citigroup and TuanChe

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

TuanChe Limited

Pair trading matchups for TuanChe

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Commodity Channel Index
Use Commodity Channel Index to analyze current equity momentum
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go