Correlation Between Citigroup and Embassy Office
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By analyzing existing cross correlation between Citigroup and Embassy Office Parks, you can compare the effects of market volatilities on Citigroup and Embassy Office 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 Embassy Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Embassy Office.
Diversification Opportunities for Citigroup and Embassy Office
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citigroup and Embassy is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Embassy Office Parks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Office Parks 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 Embassy Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Office Parks has no effect on the direction of Citigroup i.e., Citigroup and Embassy Office go up and down completely randomly.
Pair Corralation between Citigroup and Embassy Office
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.78 times more return on investment than Embassy Office. However, Citigroup is 1.78 times more volatile than Embassy Office Parks. It trades about 0.25 of its potential returns per unit of risk. Embassy Office Parks is currently generating about -0.28 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Citigroup vs. Embassy Office Parks
Performance |
| Timeline |
| Citigroup |
| Embassy Office Parks |
Citigroup and Embassy Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Embassy Office
The main advantage of trading using opposite Citigroup and Embassy Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Embassy Office 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 Embassy Office will offset losses from the drop in Embassy Office's long position.The idea behind Citigroup and Embassy Office Parks pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Embassy Office vs. NMDC Limited | Embassy Office vs. Steel Authority of | Embassy Office vs. Gujarat Narmada Valley | Embassy Office vs. Gujarat Alkalies and |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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