Correlation Between Citigroup and Digjam
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By analyzing existing cross correlation between Citigroup and Digjam Limited, you can compare the effects of market volatilities on Citigroup and Digjam 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 Digjam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Digjam.
Diversification Opportunities for Citigroup and Digjam
Good diversification
The 3 months correlation between Citigroup and Digjam is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Digjam Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digjam 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 Digjam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digjam Limited has no effect on the direction of Citigroup i.e., Citigroup and Digjam go up and down completely randomly.
Pair Corralation between Citigroup and Digjam
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.75 times more return on investment than Digjam. However, Citigroup is 1.32 times less risky than Digjam. It trades about 0.07 of its potential returns per unit of risk. Digjam Limited is currently generating about -0.02 per unit of risk. If you would invest 4,206 in Citigroup on August 25, 2024 and sell it today you would earn a total of 2,778 from holding Citigroup or generate 66.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.79% |
| Values | Daily Returns |
Citigroup vs. Digjam Limited
Performance |
| Timeline |
| Citigroup |
| Digjam Limited |
Citigroup and Digjam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Digjam
The main advantage of trading using opposite Citigroup and Digjam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Digjam 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 Digjam will offset losses from the drop in Digjam's long position.| Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal |
| Digjam vs. Gujarat Raffia Industries | Digjam vs. Kingfa Science Technology | Digjam vs. Rico Auto Industries | Digjam vs. GACM Technologies 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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