Correlation Between Citigroup and JTL Industries
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By analyzing existing cross correlation between Citigroup and JTL Industries, you can compare the effects of market volatilities on Citigroup and JTL 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 JTL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and JTL Industries.
Diversification Opportunities for Citigroup and JTL Industries
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and JTL is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and JTL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JTL 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 JTL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JTL Industries has no effect on the direction of Citigroup i.e., Citigroup and JTL Industries go up and down completely randomly.
Pair Corralation between Citigroup and JTL Industries
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.18 times more return on investment than JTL Industries. However, Citigroup is 5.54 times less risky than JTL Industries. It trades about 0.26 of its potential returns per unit of risk. JTL Industries is currently generating about -0.18 per unit of risk. If you would invest 6,361 in Citigroup on September 1, 2024 and sell it today you would earn a total of 726.00 from holding Citigroup or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. JTL Industries
Performance |
| Timeline |
| Citigroup |
| JTL Industries |
Citigroup and JTL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and JTL Industries
The main advantage of trading using opposite Citigroup and JTL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, JTL 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 JTL Industries will offset losses from the drop in JTL Industries' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| JTL Industries vs. NMDC Limited | JTL Industries vs. Steel Authority of | JTL Industries vs. Embassy Office Parks | JTL Industries vs. Gujarat Narmada Valley |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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