Correlation Between Citigroup and Mtar Technologies
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By analyzing existing cross correlation between Citigroup and Mtar Technologies Limited, you can compare the effects of market volatilities on Citigroup and Mtar Technologies 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 Mtar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Mtar Technologies.
Diversification Opportunities for Citigroup and Mtar Technologies
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Citigroup and Mtar is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Mtar Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mtar Technologies 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 Mtar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mtar Technologies has no effect on the direction of Citigroup i.e., Citigroup and Mtar Technologies go up and down completely randomly.
Pair Corralation between Citigroup and Mtar Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.61 times more return on investment than Mtar Technologies. However, Citigroup is 1.63 times less risky than Mtar Technologies. It trades about 0.45 of its potential returns per unit of risk. Mtar Technologies Limited is currently generating about 0.08 per unit of risk. If you would invest 6,842 in Citigroup on October 20, 2024 and sell it today you would earn a total of 1,157 from holding Citigroup or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Mtar Technologies Limited
Performance |
| Timeline |
| Citigroup |
| Mtar Technologies |
Citigroup and Mtar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Mtar Technologies
The main advantage of trading using opposite Citigroup and Mtar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Mtar Technologies 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 Mtar Technologies will offset losses from the drop in Mtar Technologies' long position.| Citigroup vs. Bank of Montreal | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Nova | Citigroup vs. JPMorgan Chase Co |
| Mtar Technologies vs. Cantabil Retail India | Mtar Technologies vs. United Drilling Tools | Mtar Technologies vs. Pritish Nandy Communications | Mtar Technologies vs. Cartrade Tech 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 CEOs Directory module to screen CEOs from public companies around the world.
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