Correlation Between Citigroup and Punjab Sind
Can any of the company-specific risk be diversified away by investing in both Citigroup and Punjab Sind 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 Punjab Sind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Punjab Sind Bank, you can compare the effects of market volatilities on Citigroup and Punjab Sind 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 Punjab Sind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Punjab Sind.
Diversification Opportunities for Citigroup and Punjab Sind
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Citigroup and Punjab is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Punjab Sind Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Punjab Sind Bank 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 Punjab Sind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Punjab Sind Bank has no effect on the direction of Citigroup i.e., Citigroup and Punjab Sind go up and down completely randomly.
Pair Corralation between Citigroup and Punjab Sind
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.84 times more return on investment than Punjab Sind. However, Citigroup is 1.19 times less risky than Punjab Sind. It trades about 0.25 of its potential returns per unit of risk. Punjab Sind Bank is currently generating about 0.02 per unit of risk. If you would invest 6,360 in Citigroup on August 28, 2024 and sell it today you would earn a total of 715.00 from holding Citigroup or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citigroup vs. Punjab Sind Bank
Performance |
| Timeline |
| Citigroup |
| Punjab Sind Bank |
Citigroup and Punjab Sind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Punjab Sind
The main advantage of trading using opposite Citigroup and Punjab Sind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Punjab Sind 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 Punjab Sind will offset losses from the drop in Punjab Sind's long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
| Punjab Sind vs. Cartrade Tech Limited | Punjab Sind vs. LT Foods Limited | Punjab Sind vs. Newgen Software Technologies | Punjab Sind vs. Fine Organic Industries |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Positions Ratings 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 | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |