Correlation Between Citigroup and Sandhar Technologies
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By analyzing existing cross correlation between Citigroup and Sandhar Technologies Limited, you can compare the effects of market volatilities on Citigroup and Sandhar 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 Sandhar Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sandhar Technologies.
Diversification Opportunities for Citigroup and Sandhar Technologies
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citigroup and Sandhar is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sandhar Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sandhar 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 Sandhar Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sandhar Technologies has no effect on the direction of Citigroup i.e., Citigroup and Sandhar Technologies go up and down completely randomly.
Pair Corralation between Citigroup and Sandhar Technologies
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.86 times more return on investment than Sandhar Technologies. However, Citigroup is 1.16 times less risky than Sandhar Technologies. It trades about 0.0 of its potential returns per unit of risk. Sandhar Technologies Limited is currently generating about -0.43 per unit of risk. If you would invest 7,149 in Citigroup on October 15, 2024 and sell it today you would lose (9.00) from holding Citigroup or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Citigroup vs. Sandhar Technologies Limited
Performance |
| Timeline |
| Citigroup |
| Sandhar Technologies |
Citigroup and Sandhar Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sandhar Technologies
The main advantage of trading using opposite Citigroup and Sandhar Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sandhar 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 Sandhar Technologies will offset losses from the drop in Sandhar Technologies' long position.| Citigroup vs. Nu Holdings | Citigroup vs. Canadian Imperial Bank | Citigroup vs. Bank of Montreal | Citigroup vs. Bank of Nova |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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