Correlation Between Citigroup and Nippon Life
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By analyzing existing cross correlation between Citigroup and Nippon Life India, you can compare the effects of market volatilities on Citigroup and Nippon Life 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 Nippon Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Nippon Life.
Diversification Opportunities for Citigroup and Nippon Life
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Nippon is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Nippon Life India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nippon Life India 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 Nippon Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nippon Life India has no effect on the direction of Citigroup i.e., Citigroup and Nippon Life go up and down completely randomly.
Pair Corralation between Citigroup and Nippon Life
Taking into account the 90-day investment horizon Citigroup is expected to generate 2.53 times less return on investment than Nippon Life. But when comparing it to its historical volatility, Citigroup is 1.54 times less risky than Nippon Life. It trades about 0.08 of its potential returns per unit of risk. Nippon Life India is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 22,813 in Nippon Life India on September 2, 2024 and sell it today you would earn a total of 45,737 from holding Nippon Life India or generate 200.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.12% |
| Values | Daily Returns |
Citigroup vs. Nippon Life India
Performance |
| Timeline |
| Citigroup |
| Nippon Life India |
Citigroup and Nippon Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Nippon Life
The main advantage of trading using opposite Citigroup and Nippon Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Nippon Life 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 Nippon Life will offset losses from the drop in Nippon Life's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Nippon Life vs. Neogen Chemicals Limited | Nippon Life vs. DMCC SPECIALITY CHEMICALS | Nippon Life vs. Paramount Communications Limited | Nippon Life vs. Thirumalai Chemicals 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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