Correlation Between Citigroup and Aditya Birla
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By analyzing existing cross correlation between Citigroup and Aditya Birla Sun, you can compare the effects of market volatilities on Citigroup and Aditya Birla 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 Aditya Birla. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Aditya Birla.
Diversification Opportunities for Citigroup and Aditya Birla
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citigroup and Aditya is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Aditya Birla Sun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aditya Birla Sun 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 Aditya Birla. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aditya Birla Sun has no effect on the direction of Citigroup i.e., Citigroup and Aditya Birla go up and down completely randomly.
Pair Corralation between Citigroup and Aditya Birla
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.13 times more return on investment than Aditya Birla. However, Citigroup is 1.13 times more volatile than Aditya Birla Sun. It trades about 0.33 of its potential returns per unit of risk. Aditya Birla Sun is currently generating about 0.28 per unit of risk. If you would invest 6,235 in Citigroup on September 4, 2024 and sell it today you would earn a total of 904.00 from holding Citigroup or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Aditya Birla Sun
Performance |
| Timeline |
| Citigroup |
| Aditya Birla Sun |
Citigroup and Aditya Birla Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Aditya Birla
The main advantage of trading using opposite Citigroup and Aditya Birla positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Aditya Birla 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 Aditya Birla will offset losses from the drop in Aditya Birla's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Aditya Birla vs. Compucom Software Limited | Aditya Birla vs. Gujarat Lease Financing | Aditya Birla vs. Reliance Communications Limited | Aditya Birla vs. Uniinfo Telecom Services |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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