Correlation Between Citigroup and Alps/kotak India
Can any of the company-specific risk be diversified away by investing in both Citigroup and Alps/kotak India at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Alps/kotak India into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Alpskotak India Growth, you can compare the effects of market volatilities on Citigroup and Alps/kotak India 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 Alps/kotak India. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Alps/kotak India.
Diversification Opportunities for Citigroup and Alps/kotak India
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Alps/kotak is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Alpskotak India Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpskotak India Growth 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 Alps/kotak India. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpskotak India Growth has no effect on the direction of Citigroup i.e., Citigroup and Alps/kotak India go up and down completely randomly.
Pair Corralation between Citigroup and Alps/kotak India
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.82 times more return on investment than Alps/kotak India. However, Citigroup is 1.82 times more volatile than Alpskotak India Growth. It trades about 0.09 of its potential returns per unit of risk. Alpskotak India Growth is currently generating about 0.06 per unit of risk. If you would invest 5,476 in Citigroup on September 1, 2024 and sell it today you would earn a total of 1,611 from holding Citigroup or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Citigroup vs. Alpskotak India Growth
Performance |
| Timeline |
| Citigroup |
| Alpskotak India Growth |
Citigroup and Alps/kotak India Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Alps/kotak India
The main advantage of trading using opposite Citigroup and Alps/kotak India positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Alps/kotak India 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 Alps/kotak India will offset losses from the drop in Alps/kotak India's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Alps/kotak India vs. Ft 7934 Corporate | Alps/kotak India vs. Ultra Short Fixed Income | Alps/kotak India vs. Federated Ultrashort Bond | Alps/kotak India vs. Thrivent Income Fund |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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