Correlation Between Citigroup and Raj Rayon
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By analyzing existing cross correlation between Citigroup and Raj Rayon Industries, you can compare the effects of market volatilities on Citigroup and Raj Rayon 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 Raj Rayon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Raj Rayon.
Diversification Opportunities for Citigroup and Raj Rayon
Excellent diversification
The 3 months correlation between Citigroup and Raj is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Raj Rayon Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raj Rayon 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 Raj Rayon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raj Rayon Industries has no effect on the direction of Citigroup i.e., Citigroup and Raj Rayon go up and down completely randomly.
Pair Corralation between Citigroup and Raj Rayon
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.15 times more return on investment than Raj Rayon. However, Citigroup is 1.15 times more volatile than Raj Rayon Industries. It trades about 0.27 of its potential returns per unit of risk. Raj Rayon Industries is currently generating about -0.01 per unit of risk. If you would invest 6,315 in Citigroup on September 2, 2024 and sell it today you would earn a total of 772.00 from holding Citigroup or generate 12.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Raj Rayon Industries
Performance |
| Timeline |
| Citigroup |
| Raj Rayon Industries |
Citigroup and Raj Rayon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Raj Rayon
The main advantage of trading using opposite Citigroup and Raj Rayon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Raj Rayon 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 Raj Rayon will offset losses from the drop in Raj Rayon's long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Raj Rayon vs. Cyber Media Research | Raj Rayon vs. Palred Technologies Limited | Raj Rayon vs. Arrow Greentech Limited | Raj Rayon vs. AVALON TECHNOLOGIES LTD |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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