Correlation Between Citigroup and Marshall Machines
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By analyzing existing cross correlation between Citigroup and Marshall Machines Limited, you can compare the effects of market volatilities on Citigroup and Marshall Machines 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 Marshall Machines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Marshall Machines.
Diversification Opportunities for Citigroup and Marshall Machines
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Marshall is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Marshall Machines Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marshall Machines 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 Marshall Machines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marshall Machines has no effect on the direction of Citigroup i.e., Citigroup and Marshall Machines go up and down completely randomly.
Pair Corralation between Citigroup and Marshall Machines
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.48 times more return on investment than Marshall Machines. However, Citigroup is 2.1 times less risky than Marshall Machines. It trades about 0.07 of its potential returns per unit of risk. Marshall Machines Limited is currently generating about 0.01 per unit of risk. If you would invest 4,162 in Citigroup on September 19, 2024 and sell it today you would earn a total of 2,650 from holding Citigroup or generate 63.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Citigroup vs. Marshall Machines Limited
Performance |
| Timeline |
| Citigroup |
| Marshall Machines |
Citigroup and Marshall Machines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Marshall Machines
The main advantage of trading using opposite Citigroup and Marshall Machines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Marshall Machines 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 Marshall Machines will offset losses from the drop in Marshall Machines' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Marshall Machines vs. Jayant Agro Organics | Marshall Machines vs. Vidhi Specialty Food | Marshall Machines vs. Vibhor Steel Tubes | Marshall Machines vs. JSW Steel 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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