Correlation Between Citigroup and Sapphire Foods
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By analyzing existing cross correlation between Citigroup and Sapphire Foods India, you can compare the effects of market volatilities on Citigroup and Sapphire Foods 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 Sapphire Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Sapphire Foods.
Diversification Opportunities for Citigroup and Sapphire Foods
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citigroup and Sapphire is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Sapphire Foods India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapphire Foods 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 Sapphire Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapphire Foods India has no effect on the direction of Citigroup i.e., Citigroup and Sapphire Foods go up and down completely randomly.
Pair Corralation between Citigroup and Sapphire Foods
Taking into account the 90-day investment horizon Citigroup is expected to generate 22.24 times less return on investment than Sapphire Foods. But when comparing it to its historical volatility, Citigroup is 20.02 times less risky than Sapphire Foods. It trades about 0.06 of its potential returns per unit of risk. Sapphire Foods India is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 24,157 in Sapphire Foods India on August 27, 2024 and sell it today you would earn a total of 5,883 from holding Sapphire Foods India or generate 24.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.8% |
| Values | Daily Returns |
Citigroup vs. Sapphire Foods India
Performance |
| Timeline |
| Citigroup |
| Sapphire Foods India |
Citigroup and Sapphire Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Sapphire Foods
The main advantage of trading using opposite Citigroup and Sapphire Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Sapphire Foods 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 Sapphire Foods will offset losses from the drop in Sapphire Foods' long position.| Citigroup vs. Nu Holdings | Citigroup vs. HSBC Holdings PLC | 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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