Correlation Between Citigroup and Apar Industries
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By analyzing existing cross correlation between Citigroup and Apar Industries Limited, you can compare the effects of market volatilities on Citigroup and Apar Industries 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 Apar Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Apar Industries.
Diversification Opportunities for Citigroup and Apar Industries
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Apar is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Apar Industries Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apar Industries 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 Apar Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apar Industries has no effect on the direction of Citigroup i.e., Citigroup and Apar Industries go up and down completely randomly.
Pair Corralation between Citigroup and Apar Industries
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.7 times more return on investment than Apar Industries. However, Citigroup is 1.43 times less risky than Apar Industries. It trades about 0.21 of its potential returns per unit of risk. Apar Industries Limited is currently generating about 0.08 per unit of risk. If you would invest 6,393 in Citigroup on August 31, 2024 and sell it today you would earn a total of 623.00 from holding Citigroup or generate 9.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Apar Industries Limited
Performance |
| Timeline |
| Citigroup |
| Apar Industries |
Citigroup and Apar Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Apar Industries
The main advantage of trading using opposite Citigroup and Apar Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Apar Industries 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 Apar Industries will offset losses from the drop in Apar Industries' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Apar Industries vs. Bikaji Foods International | Apar Industries vs. Ortel Communications Limited | Apar Industries vs. BF Utilities Limited | Apar Industries vs. ROUTE MOBILE LIMITED |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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