Correlation Between Citigroup and Aarti Drugs
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By analyzing existing cross correlation between Citigroup and Aarti Drugs Limited, you can compare the effects of market volatilities on Citigroup and Aarti Drugs 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 Aarti Drugs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aarti Drugs.
Diversification Opportunities for Citigroup and Aarti Drugs
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Aarti is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aarti Drugs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aarti Drugs 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 Aarti Drugs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aarti Drugs Limited has no effect on the direction of Citigroup i.e., Citigroup and Aarti Drugs go up and down completely randomly.
Pair Corralation between Citigroup and Aarti Drugs
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.56 times more return on investment than Aarti Drugs. However, Citigroup is 1.77 times less risky than Aarti Drugs. It trades about -0.02 of its potential returns per unit of risk. Aarti Drugs Limited is currently generating about -0.07 per unit of risk. If you would invest 8,051 in Citigroup on November 27, 2024 and sell it today you would lose (86.00) from holding Citigroup or give up 1.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Aarti Drugs Limited
Performance |
| Timeline |
| Citigroup |
| Aarti Drugs Limited |
Citigroup and Aarti Drugs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aarti Drugs
The main advantage of trading using opposite Citigroup and Aarti Drugs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aarti Drugs 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 Aarti Drugs will offset losses from the drop in Aarti Drugs' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Aarti Drugs vs. Coffee Day Enterprises | Aarti Drugs vs. Sonata Software Limited | Aarti Drugs vs. Speciality Restaurants Limited | Aarti Drugs vs. Transport of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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