Correlation Between Citigroup and DCM Shriram
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By analyzing existing cross correlation between Citigroup and DCM Shriram Industries, you can compare the effects of market volatilities on Citigroup and DCM Shriram 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 DCM Shriram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and DCM Shriram.
Diversification Opportunities for Citigroup and DCM Shriram
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and DCM is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and DCM Shriram Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCM Shriram 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 DCM Shriram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCM Shriram Industries has no effect on the direction of Citigroup i.e., Citigroup and DCM Shriram go up and down completely randomly.
Pair Corralation between Citigroup and DCM Shriram
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.68 times less return on investment than DCM Shriram. But when comparing it to its historical volatility, Citigroup is 3.35 times less risky than DCM Shriram. It trades about 0.18 of its potential returns per unit of risk. DCM Shriram Industries is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 19,166 in DCM Shriram Industries on September 12, 2024 and sell it today you would earn a total of 1,573 from holding DCM Shriram Industries or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. DCM Shriram Industries
Performance |
| Timeline |
| Citigroup |
| DCM Shriram Industries |
Citigroup and DCM Shriram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and DCM Shriram
The main advantage of trading using opposite Citigroup and DCM Shriram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, DCM Shriram 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 DCM Shriram will offset losses from the drop in DCM Shriram's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| DCM Shriram vs. Associated Alcohols Breweries | DCM Shriram vs. Thirumalai Chemicals Limited | DCM Shriram vs. Spencers Retail Limited | DCM Shriram vs. V2 Retail 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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